Bitcoin Weekend Rallies Prove To Be Short-Lived, Analysts Caution: ‘Watching Closely…Before Drawing Any Firm Conclusions’
By Benzinga
Bitcoin’s (CRYTO: BTC) encouraging start to the week could evaporate sooner than expected, analysts issued a warning.
What Happened: King Crypto led the market out of a correction phase over the weekend, and the positive momentum continued over to the first day of the new trading week. Bitcoin breached the $64,000 level for the first time in more than three weeks, spurring expectations of further gains.
However, analysts from cryptocurrency exchange Bitfinex believe the positive start could turn out to be a false promise.
In a note shared with Benzinga, the analysts stated that weekend-driven mini-rallies have been common over the past few months, but most fizzle out by mid-week.
“We are therefore watching closely how the start of this week plays out before drawing any firm conclusions about the market’s possible future trajectory,” the analysts cautioned.
See Also: Pepe, dogwifhat, Floki Explode Amid Searing Memecoin Rally — Dogecoin, Shiba Inu Rise As Well
The analysts also brought up Mt. Gox’s Bitcoin sell-off overhang, suggesting that any news about this incident would likely contribute to downside pressure.
Why It Matters: These bearish projections come amid strong bullish catalysts for the Bitcoin-led cryptocurrency market.
Former President Donald Trump picked Senator J.D. Vance (R-Ohio) as his running mate — a known Bitcoiner and actively supports pro-cryptocurrency legislations.
Additionally, Larry Fink, CEO of the world’s largest asset manager, BlackRock described Bitcoin as a legitimate financial instrument, capable of giving uncorrelated or non-correlated types of returns.
Price Action: At the time of writing, Bitcoin is exchanging hands at $63,794.45 up 1.40% in the last 24 hours, according to data from Benzinga Pro. The King Coin has surged more than 11% over the week.
Image via Shutterstock
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