Can Bitcoin Trigger a New Surge?

Emerging data from cryptocurrency analytics firm Swissblock suggests that Bitcoin‘s current stagnant period may soon give way to a fresh surge in the market. The signal for this potential upswing is the anticipated shift from Bitcoin’s current negative momentum to a more positive trajectory, which could ignite notable upward movements for Bitcoin and other leading cryptocurrencies.

Why is Bitcoin’s Momentum Stalling?

The insights shared by Swissblock through their social media channels indicate that Bitcoin’s momentum has stalled ahead of any potential rally. This slowdown is primarily linked to a rise in profit-taking activities. Though the pressure to sell is softer than the intense profit-taking witnessed in mid-2024, many market participants are currently opting for moderate profit-taking over panic selling.

“The propensity to generate profit is diminishing, and the selling pressure is largely being absorbed. Bitcoin is gearing up for a breakout; however, aligning momentum is crucial. If the momentum shifts while Bitcoin moves sideways, Ethereum and other altcoins might surge rapidly,” Swissblock stated.

Swissblock emphasizes that Bitcoin’s upward trajectory is currently bound by investors’ inclinations to realize profits. While Bitcoin is trying to ascend, maintaining levels above $118,000 remains a challenge due to ongoing profit-taking.

How Do Market Sentiment and Technical Indicators Shape Up?

Swissblock’s evaluations reveal that Bitcoin’s technical infrastructure remains robust, hinting at the potential continuation of the consolidation phase. Despite the challenges, Bitcoin’s fundamental metrics suggest a possible bullish trend following the current market sideways movement.

“With 96% of supply in profit, a dual situation arises: strong investors remain in the market, while unrealized gains may entice small investors to sell. Until demand resurfaces, further sales occur at every uptrend. The trend persists, but momentum regeneration is necessary,” the report articulates.

Concrete insights reveal several key points:

• Bitcoin’s technical health is robust, reflected in a stable Bitcoin Fundamental Index (BFI) at 60.
• Liquidity is improving, although network growth has slowed.
• This environment supports a stable phase before a potential upward breakout.

With Bitcoin recently priced at $114,747 and experiencing a 3% dip in 24 hours, investors expect immediate volatility. Yet, a shift to a positive momentum might signal the start of a new growth phase. Swissblock’s analyses highlight the complex dynamics within the cryptocurrency landscape, where technical signals and investor actions heavily impact market outcomes.