dailyloe.com – Bitcoin is currently trading just above $80,000, reflecting a stronger structural floor attributed to ETF demand and low exchange reserves.
The cryptocurrency has recovered from a dip caused by job data, but traders are not fully confident in this rebound.
According to Enflux, overhead resistance persists, while Glassnode indicates that traders are buying the rally yet preparing for potential declines.
Despite a 13.4% increase over the past month, Bitcoin’s recent performance appears more like a test of resistance than a definitive breakout.
Market observers note that buyers are becoming increasingly active, supported by structural factors from ETFs.
However, the activity is partly driven by leveraged futures traders, suggesting a lack of pure spot demand.
This situation raises concerns about Bitcoin’s vulnerability to macroeconomic disappointments, particularly with upcoming inflation data.
Enflux emphasized that while ETF demand and low reserves are beneficial, improvements in Bitcoin’s market structure are not straightforward.
Momentum has lessened and leverage has increased, indicating that many traders are hedging instead of fully embracing the rally.
As a result, Bitcoin remains in a precarious position, with the market heavily influenced by broader economic sentiments.
