Will the Bitcoin Rise Continue or Is a Decline Coming? Analyst Explained the Latest Situation!
Despite Bitcoin (BTC) price exceeding $109,000 and setting a new record, market data indicates that overheating has not yet occurred.
The leader of the crypto market, Bitcoin (BTC), recently surpassed the $109,000 level for the first time in its history, reaching a new peak. However, experts point out that despite the significant price increase, the market is still not overheated. According to data shared by CryptoQuant analyst DanCoinInvestor, funding rates and short-term capital inflows indicating market overheating remained at relatively low levels compared to previous peak periods.
When examining Bitcoin's funding rates, although a recent increase in long positions has been observed, this situation has remained quite limited compared to previous periods. This indicates that the market is still far from excessive leverage usage and speculative buying.
Short-term investors are cautious
The trading activities of short-term investors over the past week to a month also prove that Bitcoin has not yet overheated. Despite the intense profit-taking seen in March 2024, the current situation where short-term investors are not making significant profit sales indicates that there is room for a new wave of increase in the market.
On the other hand, the record levels of BTC in Bitcoin spot ETFs also show that institutional investor interest has increased. Particularly the growing interest of institutional and individual investors in the United States supports the overall upward trend in the market.
In light of all this data, it seems that the Bitcoin market is in a healthy upward phase and the risk of a sudden correction in the short term remains limited.
