The breakthrough of the price level of $100,000 for Bitcoin has sparked interest among new buyers of the first cryptocurrency — but the asset's rally did not occur, as experienced traders showed caution, experts from the Glassnode platform stated.
Analysts believe that if the influx of new funds slows down, it will lead to a decline in the quotes of the first cryptocurrency below the important level of $100,000.
"The market is dominated by emotional factors rather than an accurate assessment of the situation. There is currently no overheating of Bitcoin. Even if it returns to $95,000, the asset will remain in an upward trend and prepare for new historical highs," said Glassnode.
Currently, the ongoing correction of Bitcoin is causing mixed actions among investors: large players continue to build up positions, while small holders are taking profits. A new phase of growth is likely to occur in June or July, analysts at Glassnode suggested. In their opinion, the future of Bitcoin depends on how active large investment firms will be.
Previously, analysts at HTX Research reported that there was a fundamental change in the pricing logic of the first cryptocurrency — the market shifted from short-term speculation to long-term capital allocation.