Bitcoin Price Analysis: Here’s What Next For BTC Price
The post Bitcoin Price Analysis: Here’s What Next For BTC Price appeared first on Coinpedia Fintech News
In August, Bitcoin (BTC) saw its worst downturn. It fell below $50,000 after the Bank of Japan raised its interest rate from 0% to 0.25%, impacting the US stock market. Traders borrowed Japanese Yen at low interest rates to buy US assets, leading to further corrections in BTC.
At the moment, Bitcoin is trading around $60,774 on Binance. Despite a sharp drop to $49,000 on August 5 during a global market downturn, Bitcoin quickly recovered. This resilience suggests a strong support level, though the bulls’ inability to fully capitalize on the recovery raises concerns. However, analysts see this phase as a golden period to enter the market with low prices as this is the last chance to sink into the pool before the prices go UP.
But what are experts saying about this? Read On.
Will BTC Take a Dip Below $ 38,000?Bitcoin enthusiasts and investors might face a golden opportunity if they consider buying below $38,000. According to Blockstream CEO Adam Back, Bitcoin’s 200-week moving average (200MA) has recently surpassed this level, indicating a potential price floor. Historically, Bitcoin has never dipped below its 200MA, making it a critical benchmark for its price stability.
#bitcoin 200wma over $38k pic.twitter.com/olAw6BOjgz
— Adam Back (@adam3us) August 21, 2024 Analyst Weighs InProminent trader Mark Dow points out that Bitcoin’s recent peak of $73,737 in March, following successful ETF launches, has seen a 17.5% decline. This correction highlights some ongoing bearish pressure. Moreover, the market faces potential selling pressure from Mt. Gox repayments as the defunct exchange transfers significant amounts to Bitstamp.
Plus, JPMorgan has recently cautioned that there are no immediate bullish catalysts for Bitcoin, advising investors to be wary of its recent recovery.
For now, the combination of Bitcoin’s historical price behavior relative to its 200MA and the current market dynamics suggests that a drop below $38,000 may be unlikely, making this a crucial period for prospective buyers. With a bull run for most of Q1 and Q2 of 2024, the buyers confidently take bullish positions in Bitcoin. The bull run could gain momentum as the uptrend peaks at $72,000 and sustains dominance above $58,000.
Rising hopes for interest rate cuts in the US market will push BTC’s price uptrend. Therefore, 2024 is highly anticipated to be a bullish year for Bitcoin, with a potential high of around $120,000 and a potential low of $35,000.