Since reaching a new all-time high (ATH), the Bitcoin (BTC) price has stagnated. The digital currency has been trading between $90,000 and $100,000 for weeks. According to analysts at the crypto exchange Coinbase, this will not change in the short term.
Sideways Movement Expected for BTC
Coinbase analysts David Duong and David Han predict that the BTC price will perform sideways in the coming months. This expectation is based on two key factors: macroeconomic conditions and increased selling pressure from investors.
Influence of the US Federal Reserve
One of the main reasons for the sideways movement is the slow pace at which the Federal Reserve (Fed) is cutting rates. Recent economic data from the United States shows a strong labor market and persistently high inflation. As a result, traders expect the Fed to keep interest rates unchanged at 4.25% to 4.50% at its next meeting in late January. For risky assets like Bitcoin, this means slower growth potential.
Increased sales pressure
In addition to the macroeconomic factors, analysts see an increase in BTC selling pressure. Active supply—tokens moved in the past three months—has increased from 2.7 million in October 2024 to 4.6 million today. This indicates that more investors are selling their BTC, hindering strong price appreciation.
One worrying factor is selling by long-term holders (LTH). According to Coinbase, almost $90 billion worth of Bitcoin has been sold by this group. Many of these sales are in the $90,000 to $100,000 price range, further limiting price dynamics.
Future forecast for Bitcoin
The Coinbase analysts expect BTC to continue to consolidate between $90,000 and $100,000 in the coming months, similar to the situation in March 2024, when Bitcoin was also stuck in a narrow price range after a record high.
Opportunity for altcoins
Although the Bitcoin market appears to be stagnating, this presents opportunities for altcoins. Projects like XRP and Cardano (ADA) are breaking out of their stagnant trends and showing that there is still room for growth within other parts of the crypto market.
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Source: https://newsbit.nl/coinbase-weinig-stijgingspotentieel-voor-bitcoin-op-korte-termijn/
