Analysts warn that investors may shift to stock replacement strategies as Bitcoin approaches the upper end of its $73,000 to $94,000 range.
Bitcoin’s (BTC) recent rally has put it at the upper end of its trading range, and analysts are now warning that investors may look to stocks as a safer alternative.
With Bitcoin now trading at around $93,500, the cryptocurrency has broken above its 21-week moving average, which is considered a key indicator for distinguishing between bull and bear markets, analysts at Matrixport noted in a recenet research report.
With Bitcoin reclaiming its 21-week moving average — coinciding with the 23.6% Fibonacci retracement level at $87,045 — traders “have reason to take a more constructive view,” the analysts noted.
“This level now serves as a logical stop-loss for long positions. While the summer months are typically associated with sideways consolidation, the probability of further upside remains, especially as the recent gold rally strengthens the broader macro case for owning Bitcoin.”
Matrixport
Despite the positive momentum, the report cautions that the current macroeconomic conditions, including tariffs and cautious consumer behavior, might push investors to other assets.
With the possibility of spot Bitcoin exchange-traded funds inflow increasing, the analysts are urging traders to monitor these developments closely as this could become “one of the most critical indicators to watch.”
As Bitcoin nears its range top, traders may begin considering “stock replacement” strategies — taking profits on their Bitcoin positions and directing some capital toward stock options with limited risk, the analysts warn. They also note that if Bitcoin pulls back, the maximum loss is limited to the 5% premium, but if the rally continues, traders “retain upside exposure with limited downside risk.”
