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BitcoinSistemi 2025-02-05 08:53:10

What to Expect Next for Bitcoin? Analysts Evaluated and Explained the Three Things That Stopped the Rise!

The leading cryptocurrency Bitcoin (BTC) has experienced major price increases since early 2023. While BTC rose above $108,000 during this rise, its upward momentum has decreased recently. Bitcoin’s ongoing price consolidation between $90,000 and $100,000 is the third consolidation of the broader bull run that started at $20,000, with the general expectation that this consolidation will end with a bull breakout similar to the one in mid-2024 and 2023. However, analysts said three developments suggest that Bitcoin's bullish momentum is weakening. USD Liquidity Shortage! At this point, it was stated that the first development was that USD liquidity began to shrink. Blockchain expert Andy Lian said that if there’s one thing that any asset class (not just cryptocurrencies) generally dislikes, it’s the shrinking liquidity of fiat currency, especially the global reserve currency, the US Dollar (USD). Stating that the shrinking USD liquidity could create a challenging environment for risky assets including Bitcoin and cryptocurrencies, Lian said: “We are looking at a scenario where the main sources of liquidity dry up or become more tightly controlled. This could lead to a slowdown in economic activity, higher borrowing costs, and a potentially more challenging environment for risk assets, including crypto.” Trump Administration Slow to Create Strategic Bitcoin Reserve! While Donald Trump has been actively implementing various election promises regarding tariffs, illegal immigration, and international relations since taking office, he has been making slower than expected progress on the strategic Bitcoin reserve issue. At this point, while investors were expecting swift action on the BTC reserve issue, a disappointing process is underway. Jim Bianco, president of Bianco Research, said investors should wait: “Wait, Trump said he would create a BTC Reserve. He didn't say he would evaluate it. When Washington doesn't want to do something, it does an Assessment/Review. That's why the BTC reserve is coming.” RSI Indicator! While Bitcoin has been experiencing sharp declines in recent days, analysts say that the decline could deepen even further. At this point, the RSI, a frequently used indicator, also shows that the upward momentum is weakening. Market analyst Omkar Godbole said that Bitcoin’s RSI chart is drawing a pattern reflecting the bearish trend seen in 2021, and that a pattern that marked the previous local bull peak has re-emerged. The analyst noted that if the RSI breaks above the falling trend line, it would be a positive sign and indicate renewed bullish momentum. *This is not investment advice. Continue Reading: What to Expect Next for Bitcoin? Analysts Evaluated and Explained the Three Things That Stopped the Rise!

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