In a thread on X, Timer, Fidelity’s Director of Global Macro, said current trends in bitcoin’s price are suggestive of a short-term positioning adjustment rather than a long-term trend reversal.
“The short-term question is whether this a sell-the-news moment. My guess is that it will take a little time to consolidate the recent gains, now that the big moment has arrived,” Timmer posted on X. “There were more than a few participants who ‘equitized’ future spot positions through either the futures market or bitcoin-sensitive equities.”
Per Trimmer, bitcoin’s current price is reasonable and is affected by how much its network is growing and the actual interest rates in the economy and the longer-term prospects look bright.
“”Will this be a new chapter towards Bitcoin’s widespread adoption as a commodity-currency?” Timmer posted. “It seems that way, although it could take some time to get there.”
While the rally has stalled, many asset managers, according to Timer, continue to have a significant net long position in the bitcoin futures market.
Meanwhile, CoinDesk recently reported that for the first time ever, Bitcoin’s 50-week simple moving average has crossed above its 200-week average.
This event is known as a “golden cross,” which suggests a long-term bullish market, although its predictive accuracy is debated among traders.
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