Bitcoin 'Vertical Acceleration' Put on Hold as Momentum Fades: Bitfinex

The nearly three-month rally in Bitcoin (BTC) may be running out of steam, according to a new market report from Bitfinex, as buying pressure weakens and profit-taking intensifies among short-term traders.

“For the first time in that uptrend, momentum has begun to fade,” said Bitfinex analysts in a report released on Monday.

Since plunging to its year-to-date low of $73,273 on April 9, Bitcoin has surged approximately 41%, reaching $107,380 at the time of publication, based on data from CoinMarketCap.

‘Vertical Acceleration’ Delayed as Market Consolidates

While recent price action has been bullish, analysts at Bitfinex noted that order flow data and on-chain metrics suggest a cooling in upward momentum.

“Spot volume has cooled, taker buy pressure has weakened, and profit-taking has intensified — especially among short-term holders who rode the move from sub-$80,000 levels,” they explained.

The report indicated that Bitcoin may now be in a consolidation phase or nearing a local top, rather than continuing its sharp vertical climb.

ETF Inflows Remain Key Driver

Looking ahead, analysts say macro factors and institutional demand, particularly through spot Bitcoin ETFs, will be essential in determining Bitcoin’s next move.

Since June 9, U.S.-based spot Bitcoin ETFs have seen 14 straight days of inflows, totaling $4.63 billion, according to Farside Investors.

Economist Timothy Peterson described last week’s $2.2 billion in inflows as “massive,” adding:

“There’s a 70% chance next week will be positive too, which generally correlates to upward price pressure.”

All Eyes on the Fed’s July Decision

The upcoming Federal Reserve interest rate decision, scheduled for July 30, could also influence crypto markets. Lower interest rates are historically bullish for Bitcoin, and the CME FedWatch Tool shows a 19% chance of a rate cut at the upcoming meeting.

Despite near-term uncertainty, Bitfinex analysts noted that the longer-term structure remains intact, with key higher time frame support levels still holding.

“The current data points to a transition phase,” they concluded.

When Will the Uptrend Resume? Watch Long-Term Holders

Some analysts remain optimistic. Economist Donald Dean believes Bitcoin is preparing for another leg up:

“Bitcoin is getting ready to move higher with tight consolidation at the volume shelf.”

Meanwhile, Capriole Investments founder Charles Edwards said long-term holder selling has kept Bitcoin's price stuck near $100K, despite strong institutional interest.

“Bitcoin OGs have been dumping on Wall Street,” he said, referring to veteran holders who began offloading since spot Bitcoin ETFs launched in January 2024.

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