Traders remain cautious about purchasing Bitcoin at its current price, as the cryptocurrency continues to lack the momentum needed to surpass its all-time high of $111,970, according to analysts at Bitfinex.
“The bulls appear hesitant or unable to drive prices meaningfully higher without new catalysts or clearer macroeconomic signals,” Bitfinex analysts noted in a market report on Tuesday. They added that Bitcoin is displaying weakening strength as it lingers below its May 22 peak, struggling to break past that level.
$1.63 Billion in Short Positions Face Liquidation if Bitcoin Retakes All-Time High
“This indicates a lack of sustained upward momentum,” the analysts noted. At the time of publication, Bitcoin is trading at $108,560, reflecting a 2.15% gain over the past seven days, according to CoinMarketCap data.
Although Bitcoin’s all-time high of $111,970 is only 3.14% above its current price, breaking past this level could trigger the liquidation of $1.63 billion in short positions, according to data from CoinGlass.
After briefly falling below $100,000 on June 22 amid rising geopolitical tensions in the Middle East, BTC swiftly recovered. However, the rally has since lost momentum.
Bitcoin Market in a “Precarious Balance”
Bitfinex analysts characterized the current Bitcoin market as being in a state of “delicate equilibrium.”
While selling pressure from profit-taking has subsided, the analysts noted that muted buying activity indicates traders are still holding back, awaiting a clearer directional signal.
Since June 23, Bitcoin has remained “locked in a tight consolidation range” between $100,000 and $110,000, reflecting market indecision, they added.
“The broader trend has stalled,” they said, pointing out that “the lack of sustained momentum suggests buyers are also hesitant.”
“This mix of fading profit-taking and a lack of breakout conviction highlights a balanced market, poised for a new catalyst to determine its next move,” they concluded.
Bitcoin Social Media Buzz Surges
Meanwhile, data from blockchain analytics firm Santiment paints a contrasting picture. As of Tuesday, social media sentiment around Bitcoin has reached its highest level in three weeks, with 1.51 bullish mentions for every bearish one.
However, Santiment analyst Brian Quinlivan cautioned that heightened optimism isn’t always a bullish signal. Similar surges in sentiment preceded price declines on both June 11 and July 7.
Yellow Chairman Alexis Sirkia told Cointelegraph that easing geopolitical tensions and trade concerns have shifted market sentiment from fear to a more neutral-to-bullish stance.
“It also seems that Bitcoin, along with other cryptocurrencies like Ethereum and XRP, is increasingly being viewed as a hedge against ongoing economic uncertainty—much like gold,” Sirkia added.
