Bitcoin has managed to hold its floor despite weak bullish signals in the market. Analysts at Bitfinex revealed that the current crypto environment is being reshaped by shifting Federal Reserve expectations and inflation risks, creating near-term pressure for risk assets like gold and BTC.
The on-chain data shows that neither bulls nor bears are firmly in control, with BTC trading within a $62,500-$72,000 consolidation zone. This has led to a state of limbo, rather than a sustained bearish phase.
Bitfinex analysts outlined two bullish tests for a potential sustained uptrend on lower timeframes: a sustained spot ETF market bid and a calming of the derivatives complex, with funding moving from neutral to negative. However, these tests failed, and now there are opposing forces pulling at market sentiment on inflation.