Overheating in Bitcoin (BTC) Market Less Severe Than Past Correction Phases
Main Idea
The cryptocurrency market is experiencing a temporary cooling-off period after a modest uptick, with expectations of potential recovery in the second half of 2025 depending on macroeconomic conditions.
Key Points
1. CryptoQuant notes the current market overheating is smaller in scale and duration compared to prior cycles.
2. Short-term Bitcoin holdings (1 day to 1 week) saw intense activity between March-October 2024 and January-April 2025.
3. Matrixport warns of a possible pause in Bitcoin’s rally due to key macro events like Fed decisions and a White House report.
4. Historical weakness in August and September may lead to profit-taking and sideways action despite long-term positive momentum.
5. A confirmed breakout above $120.5K would validate the upward trend, while $112.5K serves as critical support.
Description
The cryptocurrency market is cooling off after a brief period of short-term overheating. Unlike prior cycles, CryptoQuant believes that the current overheating is smaller in scale and duration. This means that Bitcoin could face a limited short-term dip in the near future. Crypto Market Cools Off The data focuses on the proportion of Bitcoin held for just 1 day to 1 week – an important metric that hints at market froth. While previous corrections in March-October 2024 and January-April 2025 foll...
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