Bitfinex Issues Bitcoin (BTC) Warning! Four Critical Data Points to Attention!

Bitcoin (BTC) continues to move cautiously ahead of the Fed’s December interest rate decision, which will be announced tomorrow.

After reaching over $92,000 yesterday, BTC fell to $90,000 today. While Bitcoin remains unclear on its direction, Bitfinex analysts said the technical outlook for BTC is weak.

Bitcoin is grappling with structural weakness combined with weakening spot demand, Bitfinex analysts said in its weekly Alpha report.

“Bitcoin is entering a phase where weakening spot demand and persistent structural weakness collide. This reveals a stabilizing but far from healthy market structure.”

At this point, analysts say that Bitcoin has become vulnerable to possible macro variables due to weak spot demand and structural negativities.

Analysts also offered several key signals supporting their view.

• US spot Bitcoin ETFs are experiencing continuous outflows, with investors selling to gain strength rather than accumulating. This suggests weak buying pressure.
• Cumulative volume delta (CVD) on major exchanges is also trending negative, suggesting continued spot selling.
• Over seven million BTC currently sits at an unrealized loss, reflecting a downward trend similar to the 2022 consolidation period.
• Finally, although capital inflows remain slightly positive at $8.69 billion per month, they are much lower than in past bull periods, causing short-term price recoveries to be limited.

Bitfinex recently warned that all these factors make Bitcoin and the market more vulnerable towards the end of the year. The report also noted that weakening spot demand and a narrowing buying base, coupled with external shocks or increased macroeconomic volatility, could exacerbate price fluctuations.

*This is not investment advice.

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