Bitcoin is continuing to fluctuate as the weekend draws near and, with a lower volume of trading on exchanges, Bitcoin is hinting towards losses. BTC price has lost the gains from last week but it is able to maintain its current levels as a crucial support.
As of the time of this writing, Bitcoin (BTC) is trading at $23,000, with a tepid fluctuations over the last 24 hours, and an increase of 3% in the last week. The most popular cryptocurrency according to market cap has been underperformed Binance Coin (BNB) and Polkadot as the risk-aversion trend is beginning to be returning to the cryptocurrency market.
In a report released recently, trading company QCP Capital reiterates its position: BTC price upside potential remains limited after an upbeat reaction to the macroeconomic events of last week. QCP Capital anticipates Bitcoin along with Ethereum to trade in a sideways direction in the coming weeks, and possibly see a few temporary rises.
This may translate into price movements that is based on three macroeconomic bullish factors such as that the US Federal Reserve (Fed) has suggested an easing of its policy for monetary policy. Inflation may have reached its peak in the short-term as evidenced by the decline in prices of commodities and the potential for upside in traditional markets.
QCP Capital believes that many traditional finance market participants were short-term investors, expecting losses to increase in the recent earnings cycles. These positions are prone to being a “short squeeze”, a sudden shift towards the upside that could be beneficial to Bitcoin and the crypto market.
Will Bitcoin and Ethereum be able to overcome the hurdles in the near term?
With the possibility of a bullish trend and a resumption of bearish momentum, bears may resume their attack in the event that the Fed is more aggressive in the monetary policies it follows. QCP Capital noted that there are “many” Fed members at against current expectations of the market.
Market participants are trying to get in front of Fed by pricing in future rate increases. What is the reason why some Fed members wish to be more aggressive and shock markets with greater hike, reducing demand, and perhaps create a greater impact on the reduction of inflation? The firm’s analysts believe that the forthcoming Ethereum “Merger” is the most significant obstacle to the future appreciation of Ethereum. This could open the way for the emergence of ETH fork tokens. If one of the tokens, such as Proof-of-Work (PoW)-based Ethereum, is able to keep some market shares of Proof-of-Stake Ethereum it could be subject to “significant price disruption similar to a stock split.” . or special dividend.