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Bitfinex Warns: Bitcoin (BTC) May Be Entering a Consolidation Phase
After surging nearly 50% from $74.6K to over $107K, Bitcoin has been stuck trading between $100K-$110K, hinting at a potential shift from rapid gains into sideways consolidation.
On-chain and derivatives data suggest a cooling of the market as spot volume is dwindling, taker buy pressure has softened, and open interest in futures contracts dipped by 7% after a brief drop below $100,000. Furthermore, short-term holders are liquidating profits around the $98,700 realized price threshold, further draining aggressive upside fuel.
Historically, Q3 has been Bitcoin’s least strong quarter, characterized by low returns and trading within a limited range. Meanwhile, mixed economic signals from slowing consumer spending, persistently high core inflation, and uncertain Federal Reserve policy, could lead to a mild volatility lull before any fresh directional push.
In stark contrast to this uncertainty, however, the continuous inflows of $4.6 billion in spot Bitcoin ETFs have provided a stabilizing influence on the market, potentially underpinning price stability as momentum wanes. A dovish surprise from the Fed’s July policy decision could also reignite buying pressure and propel Bitcoin out of its current range, allowing it to renew its upward trajectory.
This article was first published on Crypto Economy.
Source: crypto-economy.com
