Bitcoin Faces Possible Slowdown after Q1 2024's 65% Price Increase, Warns QCP Capital
Summary:
As Q1 2024 draws to a close, Bitcoin (BTC) faces a potential slowdown after a 65% price increase. Trading firm QCP Capital expressed optimism for Q2 due to factors like continued BTC spot ETF demand, BTC halving, and potential Ether spot ETF approval. Though remaining bullish, QCP also warned about the year’s rapid progress posing challenges to maintain this momentum, noting signs of exhaustion and advising caution with leverage. Year-to-date, BTC/USD has surged 65.4%, closely rivalling Q1 2023.
As we near the conclusion of the first quarter of 2024, Bitcoin (BTC) faces the possibility of a slowdown after recording a substantial 65% upsurge in its price. On March 29, QCP Capital, a trading company, issued a cautionary note to its Telegram channel followers, expressing concerns about the potential challenges the soaring prices may present in the next quarter.
The Bitcoin market remains at the forefront as we approach the weekend, with several significant markers including weekly, monthly, and quarterly candles drawing to a close. The year began on a high note for BTC, with prices hovering near record levels, though converting those to new support levels proved to be challenging.
Despite the hurdles, QCP Capital maintains an optimistic outlook for the second quarter. The company detailed several key factors that could contribute to a bullish stance — persistent demand for Bitcoin spot Estalished Traded Funds (ETFs), the impending BTC halving, London Stock Exchange ETNs, and the probable approval of Ether spot ETFs.
However, the firm also noted that the year's rapid progress so far could impede the continuation of the bullish momentum. They warned of visible signs of fatigue after the thrilling first quarter price rally. The downward trend in sentiment for Ether (ETH), Bitcoin's main altcoin competitor, and persistently high exchange funding rates were additional areas of concern raised by QCP.
Although the firm remains optimistic, it advises caution regarding leverage, stating readiness to seize opportunities amidst significant value drops.
Live data from reputable sources such as Cointelegraph Markets Pro, TradingView, and CoinGlass confirm a 65.4% increase in BTC/USD this year-to-date. This figure is closely rivalling the remarkable Q1 of 2023, with a mere 6% variance between the two.
If BTC/USD closes well above $61,000, it would mean marking a seventh consecutive month of profitability, a feat achieved only once before in Bitcoin's history in 2012.
This piece is purely informational and does not provide investment guidance or recommendations. All trading or investment actions come with inherent risks, and individuals are advised to perform their own due diligence prior to decision making.
Published At
3/29/2024 11:42:48 AM
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