Wintermute, a firm specializing in digital asset trading and cryptocurrency market analysis, has indicated that Bitcoin has established technical support at a crucial level. However, for a sustained upward trajectory to materialize, more definitive signals from the macroeconomic landscape are essential.
The company’s findings reveal that while spot trading volumes are diminishing, leveraged trading is becoming the primary catalyst for short-term price fluctuations. The absence of long-term or “structural buyers,” who can effectively absorb selling pressure, has created an environment ripe for significant price swings in both directions within the market.
From a technical standpoint, Bitcoin’s price historically finds support near the 200-week moving average—a vital indicator. This particular level is noteworthy as it marks where bear market bottoms have previously formed during past cycles.
“Bitcoin’s Ascendancy Relies on Easing Macroeconomic Concerns”
Wintermute emphasizes that until there is greater clarity at the macroeconomic level, any recovery should be regarded as an opportunity to mitigate risks rather than simply chasing rallies. The firm’s analysis suggests that the cryptocurrency market’s return to a stable upward trend heavily relies on resolving existing macroeconomic uncertainties.
The report further highlights that the 200-week moving average remains robust support and indicates no structural damage within the market. This implies that if macroeconomic issues are addressed promptly, recovery could occur more swiftly than current sentiment suggests.
In terms of short-term outlooks, expectations lean towards slight downward movement with trading confined within specific ranges; leveraged positions dominate this scenario while $70,000 continues to serve as a key resistance threshold.
*This content does not constitute investment advice.