Divergent Opinions Among Crypto Specialists Regarding Future Bitcoin Price Movements
Bitcoin’s price has experienced a significant decline in recent weeks, leading to a bear market. Last week, BTC hit a low of $53,540, its lowest point since February. However, it has since recovered some of those losses and is currently trading at $57,200. This price movement has sparked a division among cryptocurrency experts, with some believing that Bitcoin is still in a bullish trend and that the recent sell-off will be short-lived.
A Standard Chartered analyst recently stated that they expect Bitcoin to surpass $100,000 by the end of the year, representing a potential 75% gain from its current level. They attribute this view to the ongoing institutional demand and the high probability of Donald Trump becoming the next US president. Trump has promised to implement favorable regulations for the crypto industry, earning campaign financing from influential figures such as the Winklevoss Twins and Jesse Powell, the founder of Kraken.
Ki Young Ju, the founder of CryptoQuant, a leading on-chain analytics company, also believes that the bullish cycle remains intact. While he predicts that the coin could drop to $47,000, he expects the bull run to continue into next year, driving the price up to $112,000.
Analysts have identified various factors that could contribute to a resumption of Bitcoin’s bullish trend. One such factor is the high likelihood of the Federal Reserve cutting interest rates following last week’s jobs data. Despite the economy adding over 200,000 jobs, the unemployment rate rose to 4.1% during the month. Citigroup and ING analysts predict that the Fed will begin cutting rates in September. This is positive for Bitcoin, as it could prompt a rotation of funds from risk-averse money market funds to assets like tech stocks and Bitcoin.
However, there are also crypto analysts who believe that Bitcoin’s price could continue to decline. They argue that the coin has fallen below the neckline of a double top pattern, indicating further downside potential as traders target the key support level at $44,000. The ongoing liquidations by the German government, Mt. Gox wallets, whale activity, and Bitcoin miner capitulation are additional factors cited by bears. Notably, a Bitcoin whale recently deposited $45.18 million to Binance and has moved coins worth $468 million since June 27th.
The German government’s continued movement of coins to exchanges has resulted in the rising volume of Bitcoin balances in these platforms, which is often seen as a bearish sign.
Overall, the charts indicate that Bitcoin is facing multiple risks, particularly the double-top pattern at $72,000. It has also fallen below the 200-day moving average and retested the neckline of the double top at $56,000. Consequently, the recent rebound in price could be a temporary recovery known as a dead cat bounce, with the potential for further decline in the near term. However, in the long run, there is a likelihood that Bitcoin will rebound and surpass $100,000.
