Bitfinex analysts advised caution despite Bitcoin’s recent price increase, pointing out that momentum in the spot market has slowed.

According to the latest analysis, while the initial surge in BTC’s price was due to strong spot market buying, this activity has since leveled off.

Analysts noted that the spot Cumulative Volume Delta (CVD), a key indicator that measures the difference between cumulative buying and selling volume over a given period, has flattened. This metric helps determine whether buying or selling pressure is dominant in the market. The recent flattening suggests that the initial wave of buying has abated.

“We expect Bitcoin to consolidate in a new range near current levels or experience a partial correction in the short term,” Bitfinex analysts wrote in a report, adding that they expect a potential period of market stabilization or a slight pullback in Bitcoin’s price.

BTC price is up nearly 7% in the last week and is trading at $63,304 at the time of writing.

*This is not investment advice.