**Bitfinex Flags Momentum Loss in Bitcoin: Local Top Forming?**
As Bitcoin trades near **\$110,000**, Bitfinex analysts are cautioning investors to **cool the euphoria**. In their latest market report, the exchange suggests that Bitcoin’s recent rally may be **losing steam**, hinting at a **local top** rather than the beginning of a vertical price explosion.
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### 📉 Key Signals of Momentum Loss
According to Bitfinex, several indicators suggest a **temporary exhaustion in bullish strength**:
* **Declining open interest** despite high prices
* **Lower funding rates**, showing fading leverage-driven demand
* A stall in **on-chain activity growth**
* Fewer new entrants compared to early 2024 rallies
This paints a picture of a market where **existing participants are rotating positions**, rather than expanding through fresh capital inflows.
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### ⚠️ Local Top vs Full Reversal
Bitfinex emphasized that this does **not necessarily signal a full bearish reversal**. Instead, it could represent a **“local top”** — a short- to mid-term consolidation before the next leg up.
Historically, such phases precede:
* **Range-bound trading** between strong support/resistance
* Increased **whale accumulation**
* **Shakeouts** of overleveraged traders
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### 🧠 What Traders Should Watch
Key metrics to monitor in coming weeks:
* **\$108K support**: Must hold to prevent a sharper pullback
* **Daily RSI & MACD divergences**: Early warning signs of slowing momentum
* **Volume trends**: Lack of rising volume could confirm exhaustion
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### 🏁 Big Picture Still Bullish?
While short-term indicators suggest caution, Bitfinex and others agree the **macro environment** remains bullish:
* Spot Bitcoin ETFs continue to see **net inflows**
* Global inflation and rate shifts may favor **store-of-value assets**
* Altcoins haven’t surged yet — leaving room for **rotational upside**
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### 🧾 Conclusion
While excitement about a breakout to \$125K persists, traders may need to **temper expectations**. Bitfinex’s data points to a cooling market
