BTC has likely bottomed but faces sideways trading, says analyst

While Bitcoin has likely reached a market bottom, it is expected to continue trading sideways for the time being, according to Vetle Lunde, head of research at K33. In a statement to The Block, Lunde compared the current market to that of September 2022. He noted that while indicators such as derivatives yields, open interest, and ETF fund flows suggested a bottom at that time, a prolonged period of sideways movement followed rather than an immediate rebound. Lunde observed that BTC investors are currently closing out their long positions, with funding rates remaining negative for 11 consecutive days. Open interest has also fallen below 260,000 BTC. Although BTC ETPs have experienced outflows of 103,000 BTC from their peak last October, he suggested this is more likely the result of portfolio adjustments than a large-scale exit. He predicted that Bitcoin will trade between $60,000 and $75,000 for some time, calling this range an attractive entry point but advising that patience will be necessary.