Matrixport: The gap between short-term enthusiasm and long-term confidence is narrowing rapidly, and the coming weeks may become a key node in determining the trend of Bitcoin

Matrixport released a weekly report saying that Bitcoin has reached a new record high, but the overall momentum is particularly fragile. The key indicators that have continued to rise are now clearly divergent, raising doubts about the sustainability of this round of gains. Debt expansion, seasonal factors and structural changes on the chain are working together in the market. Some of the data reflect a tendency for the market to take profits, while others show that the core drivers of the bull market are still there. The gap between short-term enthusiasm and long-term confidence is narrowing rapidly, and the next few weeks may be the key node that determines the trend.
Over the past six weeks, we have maintained a relatively cautious trading stance. The reason is that Bitcoin's recent breakout attempts lack the confidence and follow-up momentum shown by previous sustained rallies. The overall timing is slightly awkward, and the key indicators that have always supported a strong upside have not been synchronized. Therefore, it is not surprising that Bitcoin is currently maintaining a range-bound pattern. We believe that at this time, it is necessary to re-evaluate the downward red flag and determine whether it needs to move to more defensive positions. Although Bitcoin hit another all-time high last week, on-chain data may provide a more truthful insight into the internal health and momentum changes of the market.