Key Points
- Bitcoin (BTC) could face “exhaustion” after a 65% price increase in Q1 2024.
- Trading firm QCP Capital warns of potential challenges in maintaining momentum in the next quarter.
Bitcoin’s Potential Slowdown
As the first quarter of 2024 draws to a close, Bitcoin is showing signs of potential “exhaustion” after a 65% surge in value. QCP Capital, a trading firm, shared this outlook with its Telegram channel subscribers on March 29. The firm highlighted that the rapid price increase could pose a challenge for the cryptocurrency in the upcoming quarter.
The trading community is keenly watching the weekend as several crucial data points, such as the weekly, monthly, and quarterly candles, are about to close simultaneously. Despite Bitcoin’s price hovering near all-time highs, the cryptocurrency is struggling to convert these highs into new support levels.
QCP Capital’s Bullish Outlook
Despite these concerns, QCP Capital remains optimistic about Bitcoin’s prospects in the second quarter. The firm cites several catalysts that could drive a positive outlook, including continued demand for Bitcoin spot ETFs, the upcoming Bitcoin halving, London Stock Exchange ETNs, and the potential approval of Ethereum spot ETFs.
However, the rapid progress since the start of the year, including the launch of US spot Bitcoin ETFs in January, may make it difficult for the bulls to sustain the same momentum. QCP Capital pointed out signs of exhaustion following the exponential price rally in the first quarter.
The firm also noted a decrease in sentiment towards Ethereum (ETH) and consistently high funding rates across exchanges. While QCP Capital remains bullish on Bitcoin, it advises caution regarding leverage and is prepared to capitalize on significant price dips.
Bitcoin’s Monthly Chart
Latest data shows that Bitcoin (BTC) has a year-to-date increase of 65.4%. This performance rivals that of the first quarter of 2023, with only a 6% difference between the two quarters.
If Bitcoin closes significantly above $61,000, it will mark the seventh consecutive green monthly candle. This is a rare occurrence, with the only previous instance happening in 2012.