Bitcoin’s price increased by 27% in April, now around $94,000, but signs of market fatigue emerge. Analysts note profit taking and increased short selling, although the long-term outlook remains positive, with institutional interest growing. Predictions vary widely, with some expecting bullish movements toward $120,000 or even $200,000 this year.
Bitcoin’s price surged 27% in April, hitting around $94,000 this week, but the market is showing signs of fatigue. Analysts are now projecting potential resistance ahead. Innokenty Isers, CEO of Paybis, cautioned, “The current market outlook suggests that Bitcoin price may face more stiff resistance moving forward,” as profit taking appears to be affecting market dynamics.
Market data from Glassnode sheds light on the situation, revealing that Bitcoin’s spot volume delta has turned negative recently. This metric compares buyer and seller activity, and a negative reading here indicates that selling pressure has exceeded buying. “Aggressive sellers are dominating and spot demand is weakening – potential signs of profit taking, buyer exhaustion, or a reversal,” noted analysts from Glassnode.
Additionally, there’s an increase in short positions on Bitcoin perpetuals, which are futures contracts that don’t have expiry dates. Data from Coinglass indicates a bearish shift in the long–short ratio for Bitcoin, suggesting a stronger presence of short sellers relative to long holders. Interestingly, the opposite trend is noted in other cryptocurrencies like Ethereum and Solana, suggesting a divergence in trader sentiment across the market.
Despite the bearish indicators, market experts maintain a level of optimism about Bitcoin’s long-term prospects. While immediate profit taking may apply downward pressure on prices, continued inflows into Bitcoin exchange-traded funds signal a recovering institutional interest, especially following a slow first quarter. Geoff Kendrick, a digital assets research lead at Standard Chartered, stated that investors are increasingly shifting from gold to Bitcoin.
This rise in Bitcoin comes also after gold prices soared to an all-time high of $3,300 per ounce, with some analysts indicating that Bitcoin’s performance may rival that of gold. “Bitcoin gains are catching up to gold, and I think Bitcoin is a better hedge than gold against strategic asset reallocation out of the US,” Kendrick added.
Bitcoin’s ascent in April was spurred by easing global trade tensions, but some, like Arthur Hayes, Chief Investment Officer at Maelstrom, argue that even if geopolitical events create chaos, Bitcoin’s previous dip to $74,500 could represent a resilient bottom. They speculate further highs this year, with predictions that Bitcoin could reach as much as $200,000.
Bernstein analysts are also tossing out bullish projections, stating it’s “hard to be bearish” about Bitcoin, especially with predictions suggesting it might hit $120,000 by the end of the second quarter. Clearly, the cryptocurrency market remains dynamic and, despite possible short-term setbacks, the long-term outlook for Bitcoin appears hopeful and vibrant.
Osato Avan-Nomayo is DL News’ DeFi correspondent based in Nigeria, providing insights into decentralized finance and technology. Reach out to him at [email protected] with any tips.
