According to Coinmarketcap, the price of Bitcoin popped above $28,000 Thursday morning, reaching its highest level in two weeks. However, the largest cryptocurrency soon pared gains, with traders selling into the sudden rally.
Bitcoin climbed as high as $28,100 before dropping back down to around $27,565, essentially flat over 24 hours.
The temporary surge allowed BTC to outperform the broader crypto market, with the CoinDesk Market Index of top cryptos falling 0.3% over the same period.
Analysts attributed the brief spike to speculative purchasing as Bitcoin held technical support levels. But lacking new capital inflows, they expect the rally to fizzle out.
“In the near term, I expect the market to sell into this rally,” said John Glover, CIO of crypto lending platform Ledn. “In the absence of new capital flowing into digital assets, I believe that this is what this rally will be: short-lived.”
Glover foresees a more sustained BTC appreciation developing later this year as the cryptocurrency appears to have completed its price correction. “I do look for a sustained rally into Q2 2024,” he added.
Other market experts concur Bitcoin’s recent resilience amidst stock and bond market turmoil signals a bullish shift. But the cryptocurrency remains rangebound between $26,000 and $30,000 for now, failing to decisively break out.
Investment research firm ByteTree turned bullish on BTC given its ability to defy recent traditional asset carnage, offering a safe haven from plummeting bond values. Analyst Charlie Morris said BTC futures “look good, especially when you compare them to the crisis in the bond market.”
Still, BTC holding firmly above $25,000 support suggests it is in a bull market, according to Morris, albeit a quiet one for the moment. When yields eventually peak, he expects Bitcoin to take off and sustain its rise.
For now, the fleeting surge over $28,000 reinforces Bitcoin’s stability even amidst macroeconomic headwinds.
But lacking conviction, most traders still appear wary of extended upside just yet. Sustained buying pressure will likely be needed to exit the month-long trading range.