Bitcoin is finding it difficult to sustain the relief rally, which could put pressure on several altcoins in the near term.
Bitcoin (BTC) faced intense selling pressure last week, but a positive sign is that lower levels near $61,000 witnessed solid buying by the bulls. This suggests that the sentiment remains positive, and traders are viewing the dips as a buying opportunity.
However, the selling may not be over yet. Markus Thielen, the head of research at 10x Research, said in a recent note that Bitcoin miners may offload $5 billion worth of Bitcoin over the four to six months post Bitcoin halving. That may keep Bitcoin “sideways for the next few months,” Thielen added.
A sideways market usually traps both the bulls and the bears by giving false breakouts in both directions. Therefore, traders need to be careful and not jump to buy or sell at the first instance. It is better to wait for the breakout to sustain before taking large bets.
