Bitcoin Rally Slows as Traders Take Profits, Analysts Signal Consolidation Ahead

After dropping to its year-to-date low of $73,273 on April 9, Bitcoin has surged nearly 41% to $107,380, data from CoinMarketCap shows. However, analysts at Bitfinex noted on Monday that, for the first time during this uptrend, “momentum has begun to fade.” The report pointed out that onchain metrics and order flow data suggest Bitcoin might now be heading into a period of consolidation or reaching a local top, instead of continuing its “vertical acceleration.” Spot volume has cooled, taker buy pressure has weakened, and profit-taking has picked up — especially among short-term holders who have benefited from the rally from sub-$80,000 levels. ETF Inflows Continue but Macro Factors Remain Key Despite the short-term cooling, Bitcoin’s next move will hinge on macroeconomic developments and sustained institutional demand, particularly from spot Bitcoin ETFs. US-based spot Bitcoin ETFs have posted inflows for 14 consecutive trading days since June 9, totaling $4.63 billion in net inflows by June 27, according to data from Farside Investors. Economist Timothy Peterson described last week’s $2.2 billion ETF inflows as “massive” and expects the trend to continue this week, adding there is a “70% chance next week will be positive too, which generally correlates to upward price pressure.” Additionally, market participants are closely monitoring the Federal Reserve’s interest rate decision on July 30, with lower rates typically providing a bullish backdrop for crypto markets. According to the CME FedWatch tool, markets currently see a 19% chance of a rate cut at the meeting. Long-Term Holders Seen as Key to Resuming Uptrend While uncertainty clouds Bitcoin’s short-term direction, analysts remain optimistic about the broader market structure, emphasizing that higher time frame support levels are holding. “The current data points to a transition phase,” the Bitfinex report noted, indicating a likely period of consolidation before the next major move. Economist Donald Dean remains bullish, stating , “Bitcoin is getting ready to move higher with tight consolidation at the volume shelf.” Meanwhile, Capriole Investments founder Charles Edwards pointed out that long-term holders, or “Bitcoin OGs,” have been “dumping on Wall Street” since the launch of spot Bitcoin ETFs in January, preventing prices from breaking out sustainably above the $100,000 level despite institutional demand. The post Bitcoin Rally Slows as Traders Take Profits, Analysts Signal Consolidation Ahead appeared first on TheCoinrise.com .

Source: The Coin Rise