Bitfinex conveys potential Bitcoin sales for gains
Bitcoin Soars to a Record High of $109,590, but a Correction May Be on the Horizon
This week, Bitcoin's price surged to a historical peak of $109,590, recovering impressively from the dramatic drop in April. Despite seven consecutive weeks of gains, experts cautiously anticipate a possible short-term correction.
In its latest Alpha report, Bitfinex warned that global trade tensions, accelerated short-term investor activites, and the proposed 50% U.S. tariff on European Union imports could drive a market reversal.
Bitcoin's price fell below $109,000 just 36 hours after reaching its record-high, influenced by escalating global uncertainty, Trump's tariffs, and over-leveraged positions in derivatives. Analysts remain vigilant, watching to see if Bitcoin can maintain its position above the critical weekly support level of around $106,000 in the coming days. If short-term investors continue to realize their profits, a deeper correction may be likely.
According to Bitfinex, two main selling groups are active in the market. The first group includes investors who purchased Bitcoin at higher prices and are now achieving profits, while the second comprises investors who suffered losses during the previous crash but have since recovered their costs. On-chain data highlights that both groups are selling, ratcheting up the pressure on the crypto market.
The daily chart of Bitcoin shows two strong sell signals, including a trend line break and a breach of a bullish structure. Despite finding support at its 21-day exponential moving average (EMA), the volatile nature of Bitcoin's price movement together with over-leveraged market conditions suggests a probable correction.
Key resistance and support levels to observe are the $110,800 level, which has proven to be a significant barrier, and the $108,000 level. A breakdown of the latter could instigate profit-taking pressure, shifting the market toward short positions.
While recent trends indicate a potential short-term price correction, the long-term outlook for Bitcoin remains positive. Some predict that Bitcoin could reach as high as $120,000 if the accumulation trend continues, and macroeconomic factors support the price action.
Experts also predict that Bitcoin could retest $111,810 in June, leading to potential further gains of $116,000 to $120,000 if the golden cross trend persists and accumulation outweighs distribution. In the broader context, analysts anticipate Bitcoin's price reaching between $120,000 and $200,000 by the end of 2025 as a result of ETF flows and supply tightening.
In the recent market scenario, concerns about a potential short-term correction in Bitcoin’s price are rising, as highlighted by Bitfinex's Alpha report, which identifies global trade tensions, swift investor activities, and proposed tariffs as potential triggers. Moreover, the escalating selling pressure from two key groups – investors who made profits and those recovering losses – could intensify due to technology-driven financial activities like investing in Bitcoin through block chain technology.
