Bitcoin (BTC) has rebounded, surpassing $68,000 on Wednesday, thereby ending its five-month downward trend. According to Ed Engel, an analyst at Compass Point, this is significant as Bitcoin has never previously experienced six consecutive monthly declines in its 17-year existence.
In recent months, Bitcoin has outperformed traditional equities, despite the S&P 500 and gold prices declining amid escalating tensions in the Middle East since late February. Engel remarks that while the cryptocurrency was likely due for a recovery, current blockchain data suggests persistent bearish trends. He warns that this could lead Bitcoin to revisit lows around $60,000. Engel describes March’s performance as a “textbook relief rally” in the context of an ongoing broader crypto winter.
In contrast, Sean Farrell, the head of digital assets at Fundstrat, expresses caution regarding Bitcoin’s recent gains. During a client video session on Monday, he advised maintaining a cautious stance. “It’s essential to preserve capital, keep liquidity, and await more definitive changes in the market,” Farrell stated.
On a more optimistic note, analysts at Bernstein have suggested that Bitcoin may have finally hit its bottom. Bharat Chhugani, a Bernstein expert, indicated last week that the token appears to have stabilised, reaffirming the firm’s price target of $150,000 by the end of 2026. Chhugani highlighted recent investments flowing back into exchange-traded funds (ETFs), noting these now constitute over 6% of Bitcoin’s supply. Additionally, digital asset investment firm MicroStrategy remains a significant buyer, currently holding approximately 3.6% of the total supply.
For ongoing updates and expert insights on the cryptocurrency market, follow senior business reporter Ines Ferre on X (formerly Twitter) @ines_ferre.
In conclusion, while the recent rise in Bitcoin’s value represents a potentially positive development, analysts remain divided, with caution recommended amid underlying bearish sentiments and ongoing market volatility.
