Is Bitcoin Set for a Major Upswing? Analyst Predicts Shift in Demand Dynamics
Yahoo Finance21 hours ago
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Is Bitcoin Set for a Major Upswing? Analyst Predicts Shift in Demand Dynamics

Market Sentiment
bitcoin
marketanalysis
cryptotrends
investmentstrategies
priceprediction
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Summary:

  • Prominent analyst suggests a potential positive shift in Bitcoin's trajectory.

  • Significant drop in selling pressure observed on top exchanges.

  • Bitcoin closed nearly 12% lower in Q1, marking its worst performance in seven years.

  • Analyst Axel Adler Jr. identifies Bitcoin in an asymmetric demand zone.

  • A supply shortage could spark Bitcoin's next price jump.

A Shift in Bitcoin's Trajectory

A prominent market analyst has suggested that there is a potential positive shift on the horizon for Bitcoin. This insight follows a notable reduction in selling pressure across major exchanges, indicating a possible change in market sentiment.

Despite this optimistic outlook, Bitcoin's price chart remains weak in the short term, as noted by several analysts. The first quarter of the year was disappointing for Bitcoin, with the asset closing nearly 12% lower, marking its worst Q1 performance in seven years amid broader market uncertainties driven by rapid changes in macroeconomic dynamics.

Analyst Insights

In a recent post, crypto analyst Axel Adler Jr. highlighted that Bitcoin is currently situated in an asymmetric demand zone. He noted that while sellers appear exhausted, buyers seem satisfied with the prevailing prices. This situation is underscored by a 64% decline in selling pressure on top exchanges, dropping from 81,000 BTC in December to 29,000 BTC at the end of March, according to CryptoQuant.

Adler believes that these market dynamics could potentially lead to a supply shortage, setting the stage for Bitcoin's next upward movement. He anticipates that this could be preceded by a phase of consolidation during April and May.

Technical Analysis

Despite the underlying shift in supply and demand dynamics, many analysts still see weakness in Bitcoin's chart. Another analyst, Mathieu, commented on the need for Bitcoin to reclaim its 200-day moving average and $92,000 as support to confirm a bullish trend.

Stay tuned as we monitor these developments in the Bitcoin market!

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