Bitcoin Rally Above $80K May Not be Sustainable, Say Bitfinex Analysts

The price of Bitcoin has surged above $80,000, but market experts are warning that this rally may not be sustainable in the long term.

A recent report from Bitfinex analysts suggests that the uneven demand wave is a major concern for the cryptocurrency's future. According to the report, strong demand is typically necessary to sustain a rally, but in this case, the demand is 'not strong enough to absorb the overhead supply and confirm a sustained breakout'.

The report highlights that short-term holders are taking profits as they exit positions near breakeven, which is a sign of bear market behavior. This could indicate that the current price level is not supported by robust fundamentals, but rather by technical factors such as profit-taking.

Bitfinex analysts also note that Bitcoin's ongoing breakout stalled at the $78,000-$79,000 resistance zone due to profit-taking, rather than aggressive selling. If Bitcoin fails to reclaim and hold above this resistance level, it could drop back down to the low $70,000s, sustaining downward momentum.