As the first quarter of 2024 draws to a close, Bitcoin is on the brink of reaching the end of Q1 with a 65% increase in BTC price, but faces the risk of “exhaustion.”
QCP Capital, a trading firm, alerted its Telegram channel subscribers on March 29, suggesting that the “exponential” rise in price could present challenges in the upcoming quarter.
The Bitcoin market is especially attentive this weekend as critical candlestick patterns—the weekly, monthly, and quarterly—are set to close simultaneously.
Despite Bitcoin’s strong performance at the start of the year, maintaining momentum around its all-time highs and establishing them as new support levels remains challenging.
QCP Capital, however, maintains a “very bullish” outlook for Q2, citing several factors that could fuel further growth.
These include ongoing demand for BTC spot ETFs, the upcoming BTC halving event, the introduction of London Stock Exchange ETNs, and the potential approval of an ETH spot ETF.
The launch of spot Bitcoin ETFs in the United States in January marked a significant milestone, yet the firm cautions that the rapid pace of the Q1 rally may be hard to sustain due to signs of market fatigue.
QCP Capital expressed concerns over declining interest in Ether, the largest altcoin, and the high funding rates persisting across trading platforms.
Despite a generally optimistic stance, the firm advises caution with leverage and readiness to capitalize on significant price dips.
Recent data from Cointelegraph Markets Pro, TradingView, and CoinGlass confirms that the BTC/USD pair has seen a 65.4% increase since the beginning of the year, closely competing with the performance in the first quarter of 2023.
A close significantly above $61,000 would mark the seventh consecutive month of gains for BTC/USD, a feat only previously achieved in 2012.
This delicate balance of potential and caution defines the current state of Bitcoin as it navigates the complex dynamics of the cryptocurrency market entering Q2 2024.
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