Bitcoin is still stuck at the $70,000 level. What is the cause of this turmoil?

Research company Wolf Research Report: Bitcoin price stuck at $70,000 and trending similar to penny stocks Rob Ginsberg Analysts from Wolfe Research explain that Bitcoin has not yet broken through this strong resistance level.

Ginsberg notes that Bitcoin remained stuck at $70,000 in 2021 and fell nearly 50% three months later. However, the price managed to rise to new highs later that year. It had been closely linked for a long time. High interest rates negatively affect both. Investors have similar views on the risks facing both groups.

Since the beginning of March, Bitcoin's price has hovered around $60,000, reaching a high of $73,797.68 on March 14 and falling below $59,000 several times. This is why analysts believe that factors that would have caused the price to rise, such as Bitcoin ETFs and the halving, have faded, and expectations of a rate cut have been postponed. There are also expectations that the Federal Reserve (FED) may not cut interest rates until 2025.

Despite the near-term challenges, Ginsberg remains optimistic about Bitcoin's long-term outlook, but warns that the period of decline after the previous record could be longer. Analysts express concerns about Bitcoin's success if the stock market continues to collapse. All major stock indexes are down this month, and the small-cap Russell 2000 is headed for deeper losses of about 6%.

“We are having a hard time seeing a reversal for the stock market and Bitcoin taking off and rising, although we still think a long-term uptrend makes sense,” Ginsberg said. “But we can’t see any clear signs up close.”

source: bitcoinsystem

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