Bitcoin has continued its upward move, breaking past 80,000 dollars and briefly trading above 81,000. While this price action might suggest growing strength, analysts at Bitfinex caution that the rally may not be as bullish as it appears.
In its latest weekly report, the exchange explained that the current market structure does not strongly support further upward movement. Instead, Bitcoin appears caught between opposing forces, with optimism from buyers competing against caution from sellers. Given the broader conditions, analysts suggest the market may be more vulnerable to downside pressure than continued gains.
Why the Rally May Be Misleading
Bitfinex analysts pointed to an uneven recovery in demand as a key concern. Historically, sustained Bitcoin rallies have been driven by strong and consistent buying pressure, but that level of demand is not fully present right now.
There are signs of improvement, including steady inflows into spot exchange traded funds and continued accumulation by large institutional players such as Strategy. However, this demand is still not strong enough to absorb the supply coming from sellers, limiting the chances of a sustained breakout.
Bitcoin is currently trading within a delicate range, where short term holders are selling as prices approach their breakeven levels. According to the analysts, this pattern is commonly seen in bearish phases, where traders exit positions once losses are recovered, which in turn weakens upward momentum.
They explained that in such conditions, selling pressure from these participants can outweigh incoming demand, preventing prices from pushing higher.
Downside Risks Remain in Focus
The report also noted that Bitcoin’s recent attempt to break higher stalled around the 78,000 to 79,000 dollar range. This was not driven by aggressive selling but rather by profit taking from short term investors. This price zone is considered significant, as it aligns with key market indicators such as the True Market Mean, Short Term Holder Realized Price, and the weekly opening level.
These levels act as both resistance and support, reinforcing the difficulty of pushing beyond them.
With this resistance holding firm, Bitfinex analysts believe the market currently leans toward further downside pressure. That said, they also acknowledged that a breakout remains possible if inflows into exchange traded funds continue and institutional demand strengthens.
If Bitcoin fails to reclaim and maintain levels above current resistance, the low 70,000 dollar range is likely to serve as the next major support zone, which could keep downward momentum intact in the near term.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
