As a seasoned crypto investor with a decade of market experience under my belt, I find myself both intrigued and cautiously optimistic about the current state of Bitcoin. The Fed’s recent interest rate cut has indeed ignited a wave of bullish sentiment, but the price action over the past few days indicates that we may be in for a short-term correction before we see significant gains.
Over the past five days, I’ve noticed that the Bitcoin price has been moving within a tight band, oscillating between $62,000 and $64,000. This comes after a wave of optimism was set off by the US Federal Reserve’s (Fed) decision to lower interest rates on September 18, which seemed to boost investor confidence in the crypto market.
This significant action by the Fed has ignited hope among investors. However, Bitcoin has found it challenging to hold its ground above the crucial $64,000 mark, surpassing which could open up a path for retesting past resistance zones, aiming at $70,000 in the short term.
Bitcoin Price Set To Reach New All-Time Highs?
Although there might be temporary standstill in the Bitcoin prices currently, many analysts remain hopeful about its future value as we move towards the last quarter (Q4) of the year. Market expert Lark Davis, for one, has pointed out historical trends that indicate an average return of approximately 88% for Bitcoin during Q4.
Davis proposed that if Bitcoin’s growth mirrored its previous performance, it could potentially reach around $120,000. On a more moderate note, assuming a 55% increase, similar to last year’s growth, would bring the price up to approximately $100,000.
Moreover, the expert highlights some distinctive factors that may spur substantial changes in prices this year. These factors include the debut of Bitcoin ETFs on the market, the approaching U.S. elections, and the anticipated $16 billion in cash refunds from the failed FTX exchange.
In examining the present situation of the Bitcoin market, it appears that recent price fluctuations may be “restricted unnaturally.
Analysts Warns Of Final Dip Before Further Price Gains
According to Analyst InspoCrypto’s observations, the price of Bitcoin has consistently remained around $63,000, with any attempts at breaking out being thwarted. It seems that a substantial institutional options trader has made a large trade intended to maintain Bitcoin’s price steady until October 4th.
In simpler terms, InspoCrypto clarifies that the Spot Cumulative Volume Delta (CVD) demonstrates a consistent pattern of distribution as prices increase, implying that the rise in prices is coming from both spot and future trades. However, the Futures CVD shows a divergence, indicating that recent price growth might mainly be due to increased futures trading activity.
According to the Whales vs. Retail Ratio analysis by Hyblock, it appears that the whales (large-scale investors) are building up their short positions, whereas retail investors are mainly taking long positions. This situation could potentially be disadvantageous for retail investors if market conditions turn against their bets.
Despite this, InspoCrypto anticipates that the market could experience a minor downturn prior to hitting fresh record highs of around $80,000 to $85,000 for the leading cryptocurrency in the market.
In line with his technical assessment, analyst Ali Martinez notes that Bitcoin is encountering its 200-day Simple Moving Average (SMA) at approximately $64,000, serving as a temporary barrier. If Bitcoin manages to surpass this crucial level, it may indicate a strong bullish momentum, as suggested by Martinez.
Moving forward, if the Bitcoin Long-Term Power Law remains valid, Martinez anticipates that the next market peak might hit approximately $400,000. This predicted pinnacle is thought to be reached around October of the coming year.
In summary, although Bitcoin encounters temporary obstacles at present, there’s a general agreement among experts that it could reach new peak values by Q4 this year and beyond 2025. This optimistic outlook persists, even amidst the current market conditions and Bitcoin’s struggle to surmount immediate barriers.
Currently, Bitcoin (BTC) stands at approximately $63,160, showing minimal fluctuations compared to its value on Monday, and a modest increase of about 0.7% in the last 24 hours.
Read More
Sorry. No data so far.
2024-09-27 00:05