Bitcoin (BTC), which fell to as low as $80,000 last week, surpassed the $90,000 mark this week amid growing expectations that the Fed will cut interest rates in December.
However, the important issue is whether this rise in Bitcoin will continue.
At this point, QCP Capital, a Singapore-based trading firm, said that Bitcoin could face strong resistance in the mid-$90,000 level if the uptrend continues.
Although Bitcoin has broken through the $90,000 barrier amid interest rate cut expectations, BTC is likely to face strong resistance in the mid-$90,000 range, according to QCP Capital.
The analyst firm described the current rally in Bitcoin as a technical recovery amid shrinking liquidity.
QCP Capital, which identified the $80,000 to $82,000 range as a key support level, also said that bullish catalysts are yet to emerge.
At this point, the analyst firm expressed concern about weakening institutional demand, noting that US spot Bitcoin ETFs have not yet seen significant net inflows and that Bitcoin owner Strategy’s stock is nearing a loss-making point and is being reviewed for removal from the MSCI index.
The analyst firm also suggested that weakening momentum in the AI sector, driven by rising credit risk and a surge in NVIDIA’s accounts receivable and inventory, could weigh on the broader risk-to-asset rally that has supported Bitcoin’s bull run in recent years.
“The recovery in Bitcoin remains merely a technical one due to dwindling liquidity.
The rise in Bitcoin could be capped at the mid-$90,000 level, which could act as a strong resistance for BTC.
However, the $80,000-$82,000 range remains the key support level.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/bitcoin-surpasses-90000-but-a-major-obstacle-faces-the-rise-analysis-firm-explains/
