As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen bull runs and bear markets come and go. The recent analysis by crypto analysts like Cole Garner and Ali on Bitcoin’s potential capitulation and subsequent bull market has caught my attention.
Based on the perspective of a cryptocurrency expert, Bitcoin (BTC) might be moving towards a phase known as “capitulation” because of the increasing scarcity in its on-chain liquidity. Yet, following this potential capitulation, the market could transition into a robust and bullish state.
Bitcoin Headed Lower Before Higher
Discussing Bitcoin price analysis on platform X, crypto expert Cole Garner hinted at an approaching phase of sell-off (capitulation) for the primary cryptocurrency. He links this possible drop in value to a decrease in on-chain liquidity.
Based on his analysis of liquidity trends from central banks globally, he interprets this as a sign to invest in digital assets. Yet, it’s possible that cryptocurrencies may face further setbacks before any positive impact from central bank actions aimed at increasing liquidity can be felt.
According to Garner’s interpretation, if China does not take action to stimulate its economy, it might be up to either the Federal Reserve or the Bank of Japan to step in and provide the necessary economic boost. This seems to suggest that China’s recent central bank actions were insufficient to improve the country’s struggling economic forecast.
In his analysis, Garner pointed out the latest economic boost provided by China’s central bank. However, this week, the People’s Bank of China (PBoC) decided against providing more liquidity, which has dampened enthusiasm for speculative investments such as cryptocurrencies.
Garner emphasized the low supply of stablecoins compared to the beginning of October 2024.
Examining the “Bitfinex Grail,” representing the combined total circulation of the top two stablecoins on the platform – USD Tether (USDT) and USD Coin (USDC) – it was observed that their quarterly growth rate is decreasing. This could possibly result in a short-term downward trend for digital asset prices.
Despite these concerns, Garner pointed out that Bitcoin has printed a higher high on the 8-hour chart, and the market structure remains bullish. Even if BTC dips to its range lows in the high $40k range, the overall price action is still considered positive.
Garner advises that if Bitcoin (BTC) reaches its lower limit, it could be a good opportunity for traders and investors to buy at that price. Regardless of whether they have limited funds available, they should try to remain calm and avoid selling their existing holdings due to market scares or panic.
Analyst Ali appears to share Garner’s perspective, suggesting that Bitcoin is trapped within a falling parallel channel and could potentially drop towards the lower end of the channel around $52,000. However, for a bullish reversal, Bitcoin must first surpass the resistance at $66,000.
Can Bitcoin Hit New All-Time Highs In 2024?
Looking forward to the rest of 2024, Bitcoin enthusiasts are hopeful that potential interest rate reductions by the U.S. Federal Reserve will ignite another surge in value. Nevertheless, Bitcoin needs to overcome several obstacles to maintain its upward trend.
According to crypto expert Carl Runefelt, Bitcoin needs to surpass the $64,000 barrier for a potential rally during Q4 of 2024. If it can’t manage this, there might be more price drops ahead.
After that, Bitcoin’s price changed to green in October, fueling optimism among bullish investors about another potential surge referred to as “Uptober”. At this moment, Bitcoin is being traded at $60,711, representing a decrease of 2.4% over the past 24 hours.
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2024-10-11 04:16