Bitcoin market participants face a $120 million resistance that could affect its ongoing ascending trend, as institutional interest remains high and market dynamics continue to evolve.
This development highlights the resilience of Bitcoin’s current rally and underscores market participants’ focus on overcoming structural barriers to maintain momentum in a liquidity-driven environment.
Bitcoin Bulls Confront $120 Million Resistance
The Bitcoin market is experiencing a $120 million resistance, impacting futures market open interest and spot market liquidity. This challenge is vital for bulls aiming to extend the current upward trend.
Institutional investors and trading firms are keenly involved, managing positions in both futures and the spot market, trying to navigate this crucial resistance landscape.
Liquidity Shift Leaves Altcoins Lagging
The $120 million resistance reflects heightened market positioning, potentially stalling Bitcoin’s price rise. However, insight from Samuel Shiffman suggests Western bank credit growth as a supporting market dynamic.
“Many have cited China’s liquidity injections as the main catalyst for the rally, but that perspective is misguided. The genuine support is derived from the growth of Western bank credit—a less visible force propelling this movement. We likely have some leeway through June and into early July before the dynamics begin to shift…our leading indicators indicate that the peak in financial easing might not extend beyond August.” — Coindesk
Market dynamics show a shift in liquidity toward Bitcoin, leaving altcoins like APT, AVAX, and UNI lagging. The pattern of diminishing breakout gains indicates a maturing market with concentrated opportunities and risks.
Bitcoin’s Uptrend Mirrors Past Cycles
Bitcoin’s current stair-step uptrend follows a familiar cycle of rallies and consolidation seen in previous years. These structures, while illustrative of growth, reveal diminishing returns with each breakout.
Analysts like Samuel Shiffman highlight a trend supported by macro liquidity factors, primarily from Western credit expansion rather than Asian influences. This evolving dynamic emphasizes strategic market movements. For further discussion on market charts and trends, check out the insights shared by Ali.
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