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Bitcoin (BTC) broke new records after four difficult months, rising above $111,000 according to Binance TR data.
While the general expectation in the market is for the rise in Bitcoin to continue, Singapore-based cryptocurrency company QCP Capital evaluated the latest situation in Bitcoin.
Accordingly, analysts stated that the upward trend in Bitcoin is solid, and that the brief pullback after ATH was due to profit taking, but the upward demand quickly resumed.
Noting that the recent BTC rally reflects a solid trend supported by improved structural fundamentals and relatively low volatility, analysts said, “this rally feels more structurally sound than the previous one.”
Analysts said that the options market also pointed to a rise in Bitcoin, and that traders quickly bought calls after a short-term decline.
“After BTC’s initial ATH, it triggered profit taking and a brief drop occurred.
But buyers quickly reloaded on the upside. Most notably, 1,000 call contracts were aggressively purchased at the 130K strike in September.”
Noting that the bull trend is currently continuing, analysts added that institutional Bitcoin bull Strategy’s plan to use its $2.1 billion, 10% yielding Perpetual Preferred Share (STRF) offering for BTC purchases could be a catalyst that could push prices even higher.
Despite all this positive sentiment, analysts said broader macro risks still remain in play.
At this point, QCP analysts stated that renewed tariff concerns, rising US yields, and a stronger dollar could bring volatility, especially for altcoins.
*This is not investment advice.
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