Bitcoin’s Uptrend Has Begun: Will It Continue? Experts Weigh In

In its latest analysis, the cryptocurrency analytics company The DeFi Report assessed the current state of the markets and future expectations.

Analyst Mike maintains his view that despite geopolitical developments and short-term upsides, prices could fall to lower levels.

Oil prices fell by 20% following news of a two-week ceasefire between Trump and Iran, while Bitcoin gained 6% and Ethereum 8%. However, Mike warns that this ceasefire may not be as solid as it seems.

Iran’s control over the Strait of Hormuz and the high fees it demands per ship are considered a “threat” by the US. This situation is said to make a permanent drop in oil prices difficult.

Mike points out that the markets are structurally weak and that this expectation of a decline is based on three main factors:

Liquidity Cycle: Global liquidity indicators are said to tend to turn downwards after peaking. Bitcoin often acts as a “signal” that foreshadows liquidity peaks.

Bitcoin Investor Structure: Compared to past bear markets, it appears that the “weak hands” who bought at the peaks haven’t been completely eliminated yet. While previous cycles saw changeover rates as high as 60%, this rate is currently around 40%.

Macroeconomic Pressures: It is added that the Federal Reserve’s hands are tied regarding interest rate cuts because high oil prices are triggering inflation.

The P&P 500 index is reportedly trying to stay above its 200-day moving average, while Bitcoin is facing strong resistance at the $74,000-$75,000 level. The analyst describes the current phase as a “trust in the process” period and advises investors to be patient and stay away from the noise on social media.

*This is not investment advice.