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Bitcoin faces risks of exhaustion amidst impressive Q1 gains

TL;DR

  • Bitcoin sees a 65% price gain in Q1 2024 but faces exhaustion risk as the quarter ends. 
  • The market observes key candles as BTC’s price slows. 
  • QCP Capital remains cautiously optimistic for Q2, advising readiness for market dips.

With a startling 65% increase in price gains, Bitcoin is about to reach a major milestone as the first quarter of 2024 draws close. However, as the cryptocurrency approaches the end of Q1, trading company QCP Capital has sent a warning, stressing the possible risks of “exhaustion.”

Bitcoin price action 

Observers of the bitcoin market are keeping a careful eye on several important signs as the price movement of the cryptocurrency slows down following a revolutionary start to the year. Even while Bitcoin is close to its all-time highs, it hasn’t been able to solidify its support at these points.

QCP Capital alerts issuers about second-quarter risks

QCP Capital updated its Telegram channel subscribers with cautious comments on the second quarter, which still looks “very bullish” to the firm. The market remains positive on the back of other catalysts: BTC spot ETFs keep attracting demand, the BTC halving is right around the corner, London Stock exchange ETNs have recently been introduced, and ETH spot ETFs might be approved. Yet, QCP Capital warns that “all signs of last year’s top are brewing with exhaustion after a no-pullback rally since the Christmas blues”.

At the same time, deteriorating sentiment on Ether and a continuation of large funding rates across exchanges increased worries about market leverage. 

Despite the existing challenges, market participants remain cautiously optimistic. Although QCP Capital maintained a long bias, they preserved readiness to benefit from big market drawdowns by keeping tail-put hedges on Bitcoin exposure. This strategy enables the firm to address potential risks associated with the significant momentum and growth levels registered over the quarter. As Bitcoin transitions to the second quarter of the year, critical developments and indicators will help to gauge the cryptocurrency’s underlying strength and the possibility of further growth.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

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