Stock market analysts have issued a warning about the recent uptrend in Bitcoin’s price. Bitfinex analysts have cautioned investors to proceed with caution despite the surge in BTC’s price, as momentum in the spot market has slowed down.
According to the analysts, the initial increase in Bitcoin’s price was driven by strong buying activity in the spot market. However, this buying pressure has now leveled off, as indicated by the flattening of the spot Cumulative Volume Delta (CVD). The CVD measures the difference between cumulative buying and selling volume over a specific period and helps determine market sentiment. The recent flattening of the CVD suggests that the initial wave of buying has subsided.
In light of this analysis, Bitfinex analysts predict that Bitcoin will either consolidate near its current levels or experience a partial correction in the short term. They expect a period of market stabilization or a slight pullback in Bitcoin’s price.
At the time of writing, Bitcoin’s price has increased by nearly 7% in the past week and is trading at $63,304.
It is important to note that this article does not provide investment advice.
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