In a recent research report, analysts at Bitfinex, a prominent crypto exchange, have expressed confidence that Bitcoin (BTC) is unlikely to dip below the $20,000 mark in the ongoing cycle. The study highlights the significant activity of long-term holders who have been actively accumulating Bitcoin since February 2023, when its value surpassed $24,000.
Currently hovering around $70,600, Bitcoin’s short-term holder realized price is noted at $55,834, indicating a crucial support/resistance level throughout the cycle, according to the analysts. They emphasize that even if Bitcoin experiences downward movement, a swift recovery akin to previous occurrences is not expected.
The analysts predict that any potential decline to $56,000 would align with historical patterns, representing a downturn of approximately 23-24% from a new local high to the bottom.
Bitfinex’s research also highlights recent data from spot Bitcoin exchange-traded funds (ETFs), revealing net negative flows for the first time in recent weeks. Each trading day saw a net negative flow, with total outflows surpassing $2 billion, predominantly from the Grayscale Bitcoin ETF. After factoring in inflows from other ETFs, a net outflow of $896 million was recorded.
Despite the shift towards negative ETF flows, analysts remain unfazed, attributing the outflows to investors transitioning funds from GBTC to other ETF providers offering more competitive management fees.
