Coinbase lists three bearish factors, not optimistic about the short-term performance of the cryptocurrency market

Coinbase recently pointed out in its weekly report that despite Bitcoin hitting new all-time highs, the cryptocurrency market still faces some macro technical resistance in the short term that may limit further upside.

Coinbase Lists Three Bearish Factors

Coinbase analysts David Duong and David Han have identified several potential downward factors, suggesting that the short covering that initially drove the rally appears to have run its course, with upward momentum likely to face significant resistance in the coming weeks.

Bearish factors include:

• The Federal Reserve's bank funding program BTFP expires on March 11, which could once again impact the financial system.

• Declining cash reserves of fund managers and end-of-quarter rebalancing could affect net inflows into the cryptocurrency market.

• The U.S. Consumer Price Index (CPI) for February will be released on March 12.

Arthur Hayes on BTFP: Deflation Triggered by the Banking System Will Occur, Fed Will Cut Rates Soon

Await Halving, ETF Now an Important Pillar

Coinbase is not extremely bearish, believing that Bitcoin is most likely to range within a certain range until the next significant event, the Bitcoin halving in mid-April.

However, Coinbase also highlights the importance of ETFs, stating that the Bitcoin spot ETF has changed the market dynamics of Bitcoin and weakened the utility of the Bitcoin halving cycle.

Analysts remarked:

Considering the cumulative growth of BTC held by Bitcoin spot ETF issuers, which is nearly three times that of miners, Bitcoin ETF has become an important pillar of Bitcoin demand.