The Bitfinex exchange has published a report evaluating Bitcoin’s potential recovery over the upcoming weeks, given certain conditions are met. The report analyzes the corrections observed in the current bull cycle and market dynamics as a whole.
Details of the Bitfinex Report
According to the report, Bitcoin $84,186 typically experiences shallow pullbacks of around 18% to 22%, but this time has faced a nearly 30% decline from its record peak. This indicates that Bitcoin is following a different trajectory compared to its previous bullish patterns.
The Bitfinex report highlights that if stability is achieved at threshold levels, a price reaction could occur. It emphasizes that the current level of Bitcoin could represent a significant turning point.
“If Bitcoin stabilizes at this level, a strong recovery can occur based on historical data.” – Bitfinex
Short-Term Expectations in Cryptocurrency
The report further states that ETF flows, macroeconomic developments, and the market’s liquidity status will be crucial in Bitcoin’s recovery process in the coming weeks. The reintegration of institutional investors could contribute to a price increase.
“If risk appetite remains low, the price may trade sideways or even decline further.” – Bitfinex
It also points out that investors holding BTC over the last 180 days are currently in a losing position, which could pressure this group to close their positions due to the downward trend. The report suggests that if long-term investors and institutional players regain their appetite for buying, a stronger price response could lead to a more robust recovery.
The analysis indicates that Bitcoin’s recovery could depend on maintaining the current correction level. Investors should closely monitor ETF flows and macroeconomic indicators to reassess their risks in line with short-term movements.