Bitcoin price analysis
Will Bitcoin Price Bottom at $50k Amid Growing Speculation of Fed Rate Cut?
Published
3 months agoon
By
adminBitcoin price correction eased on the weekend as the buyers found suitable support at the $60000 psychological level. This support, backed by the 200-day Exponential moving average, has sparked a temporary relief rally in the altcoin market. However, the overhead supply on the crypto market persists due to poor employment reports, geopolitical tension in the Middle East, and fear of recession. Will BTC witness prolonged correction for the rest of August?
Fed Rate Cut Speculations May Drive Market Reversal
This week, the cryptocurrency market witnessed a notable downfall attributed to a series of adverse developments affecting the broader market. The selling pressure was initiated by Bitcoin’s reversal from $70000 resistance and escalated further in mid-week following the geopolitical tension in the Middle East and the fear of recession.
The recent poor employment report has bolstered a dovish shift in the market, raising concerns about potential rate cuts in September. According to Nick Timiraos of The Wall Street Journal, these reports could force the Federal Reserve to adjust monetary policy for stabilizing the economy.
Financial giants Citigroup and JPMorgan expect the FED to cut interest rates in a series, starting with 50 bps in September, then another 50 bps in November, and a further 25 bps in December.
Citi and JPM now expect the Fed to cut rates by 50 bps in Sept, 50 bps in Nov, 25 in Dec.
(Will update this table later today as many of these are now likely getting redrafted.) https://t.co/nuPs9Lp1Kp
— Nick Timiraos (@NickTimiraos) August 2, 2024
Moreover, data from the CME Group shows a 78% probability of a 25 bps September cut and a 22% probability of a 50 bps cut, thus further adding to market sentiments toward impending rate cuts. Additionally, JPMorgan has estimated that the Fed would cut its benchmark rate to about 3%, signaling that rate cuts could continue until Q3 2025.
The anticipated cut would bolster the borrowing environment for banks and encourage investment in riskier assets such as cryptocurrencies. Thus, the BTC price could seek suitable support at major technical levels such as 200-day EMA and $50000.
Bitcoin Price Seeks Major Support From Flag Pattern
Over the past five months, the Bitcoin price forecast shows a sideways trend resonating within the two downsloping trendlines of the flag pattern. Theoretically, this chart pattern leads to a temporary consolidation for buyers to recuperate bullish momentum for the next leap.
Amid the market correction, the BTC price fell from the flag resistance at $70000 and plunged 14.84% to $59800. Consecutively, the market cap tumbled to $1.178 Trillion.
The recent $60000 breakdown may increase selling pressure and push Bitcoin 14.5% down to retest the flag support trendline at $51000. A bearish crossover between the 20-and-50 exponential moving average indicates that sellers are strengthening their grip on this asset.
However, the Bitcoin price could rebound from a lower trendline at $51000-$51000 and bolster a rally to regain the $60000 floor, followed by $70000.
Frequently Asked Questions (FAQs)
The CME Group provides probability data based on market expectations for interest rate changes. The percentages represent the likelihood of different rate cut scenarios occurring.
An interest rate cut by the Federal Reserve lowers the cost of borrowing, encouraging spending and investment by businesses and consumers.
The $51000 backed by flag pattern trendline acts as stands crucial support for BTC price
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Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bitcoin
Dormant Bitcoin Wallet From 2012 Awakens, Moving Millions—BTC Price To Dip?
Published
6 days agoon
October 30, 2024By
adminA Bitcoin wallet containing around 749 BTC, equivalent to roughly $53.2 million, has been reactivated after nearly 12 years of inactivity.
This sudden move in funds was detected in the early hours of Tuesday, as blockchain tracking platforms such as Mempool and Whale Alert recorded a transfer of approximately 159.2 BTC, valued at $11.3 million, from this long-dormant wallet.
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The last known transaction from this address was back in November 2012, when Bitcoin’s price was around $10, making the wallet’s balance worth below $9,000.
💤 💤 💤 💤 💤 💤 A dormant address containing 749 #BTC (53,227,433 USD) has just been activated after 12.0 years (worth 7,974 USD in 2012)!https://t.co/5SzBYeKlk1
— Whale Alert (@whale_alert) October 29, 2024
Details Of The Moved Millions
Data from on-chain monitoring platform Mempool, shows that the recent transaction was conducted at 7:28 a.m. UTC. Of the 159.2 BTC transferred, about 124.2 BTC, or $8.8 million, was sent back to the sender’s address, labeled as “change” by blockchain analytics firm Blockchair.
The remaining 35 BTC, or $2.4 million, was transferred to an unknown address. Details surrounding the wallet’s owner and their intentions remain unidentified, leaving the crypto community speculating on the motive behind the transaction and the identity of the long-term Bitcoin holder.
However, the timing of the awakening of this dormant wallet is quite noteworthy. It comes at a time when Bitcoin has been seeing consistent increases in price in recent weeks. Particularly, the asset has finally broken above the $70,000 resistance with a current trading price of $72,638 up by 5.3% in the past day.
Notably, movements from long-inactive wallets have historically generated intrigue, with crypto enthusiasts theorizing that these could be the actions of early adopters, lost-and-found wallets, or entities choosing strategic timing to engage with the market.
Although the reason behind this wallet move of its BTC isn’t certain, reactivating wallets like this one especially as Bitcoin continues to surge in price might indicate shifts in holders’ strategies, driven by favorable market conditions or other personal financial objectives.
Bitcoin Onchain Performance
Awakening of wallet aside, Bitcoin has been seeing quite an interesting and positive trend behind the scenes, especially regarding on-chain metrics. So far, analysts have highlighted several BTC metrics that are now flashing a positive momentum for the asset, suggesting further price increases.
For instance, yesterday, a CryptoQuant analyst known as Darkfost disclosed that Bitcoin hash ribbons have flashed a buy signal. Darkfost noted:
Historically, purchasing Bitcoin during a Hash Ribbons signal has aligned with strong long-term returns. Recently, we saw another signal following the major one this past summer.
Another metric suggesting price increase for Bitcoin highlighted by a CryptoQuant analyst named BinhDang is the Stablecoin Supply Ratio Oscillator (SSRO). According to BinhDang in a recent post, this metric has bottomed to levels not seen in 2022. A move that preceded a rally.
Notably, the Stablecoin Supply Ratio Oscillator provides insights into Bitcoin market demand by analyzing Bitcoin’s market cap against that of major stablecoins.
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The oscillator measures the extent to which stablecoins, commonly used for Bitcoin purchases, flow into Bitcoin and thus signal purchasing interest. A low value of the metric signals more stablecoins are being converted to Bitcoin, therefore suggesting increasing demand.
Featured image created with DALL-E, Chart from TradingView
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Bitcoin price
Why Max Keiser Predicts Bitcoin Price Will Hit $220,000 Soon
Published
2 weeks agoon
October 19, 2024By
adminMax Keiser, a renowned Bitcoin maximalist, doubled down on his Bitcoin price bet with a recent bullish forecast posted to X (formerly Twitter). According to this prediction, Bitcoin will skyrocket to $220,000, and gold will play a crucial role in this move. This optimistic call from Keiser comes as BTC tagged the $69,000 level on Friday.
Max Keiser’s $220,000 Bitcoin Price Bet
Max Keiser’s love for BTC explains his optimism around his recent Bitcoin price prediction of $220,000. The recent tweet also considers gold’s influence on Bitcoin, which makes sens considering the high correlation between Bitcoin and gold.
The new ATH Gold price is predicting Bitcoin will trade over $220,000 very soon.
— Max Keiser (@maxkeiser) October 18, 2024
He expects gold hitting a new all-time high of $2,722.54 per ounce as of October 19 could fuel the largest crypto asset’s rally as well. This optimism makes sense, considering Bitcoin’s ATH has historically preceded substantial rallies in gold.
This prediction is not Keiser’s first rodeo, he has been forecasting BTC’s future since 2013. In 2014, it was “Bitcoin will replace fiat currencies,” and during the 2017 bull run, Keiser expected BTC price to hit $5,000.
The year-to-date performance shows Bitcoin is up 61%. To make things more interesting, BTC has shot up by 40% in the past 75 days.
While the prediction is optimistic, BTC needs to rally more than triple from the current level of $69K to hit Keiser’s target. Will Bitcoin price hit $220,000?
Will Bitcoin Hit $220,000?
Here are three reasons why it is likely for Bitcoin price to hit $220,000 this cycle.
- Clear regulation surrounding Bitcoin: The regulation surrounding Bitcoin has become clear after BlackRock filed for ETF. Moreover, the US SEC also approved Bitcoin options on Friday, October 18, 2024. All of these developments only increase the adoption of BTC, making it fundamentally strong and ready to push higher.
- Favorable macroeconomic conditions: The US Federal Reserve’s dovish pivot, marked by interest rate cuts and cooling inflation only adds fuel to Keiser’s forecast. The shift in monetary policy from quantitative tightening to easing has a bullish effect on risk-on assets like Bitcoin. Although Keiser’s prediction may seem far-fetched, it does seem likely if the Fed continues on this path.
- Breakout from seven-month consolidation: The past seven months have seen BTC consolidate in a downtrending structure. But BTC’s recent uptick to $69,000 supports the resurgence of bulls and a potential start to the bull run.
Experts Echo Max Keiser’s Optimistic BTC Price Prediction
Here are some expert predictions that support Max Keiser’s forecast of Bitcoin reaching $200,000:
- Renowned trader Peter Brandt predicts Bitcoin will reach $120,000 to $200,000 by September 2025. He revised his forecast with a higher target after Bitcoin’s strong performance.
- Venture capitalist Chamath Palihapitiya forecasts that Bitcoin will hit $500,000 by October 2025 and $1 million by 2040-2042. He views Bitcoin as a potential global reserve currency with unique attributes.
- Fidelity’s Director of Global Macro, Jurrien Timmer, anticipates Bitcoin to hit $1 billion by 2038-2040.
As the cryptocurrency landscape evolves, Keiser’s $220,000 forecast will be closely watched. Will Bitcoin deliver another unprecedented surge or face rejection at $70,000? Only time will tell.
Frequently Asked Questions (FAQs)
Max Keiser predicts Bitcoin will skyrocket to $220,000, citing gold’s influence and favorable macroeconomic conditions.
Keiser expects gold to hit a new all-time high, fueling Bitcoin’s rally due to their high correlation.
Clear regulation, favorable macroeconomic conditions, and Bitcoin’s breakout from seven-month consolidation support Keiser’s forecast.
Akash Girimath
Akash Girimath, an engineer by training, has developed a deep fascination with the complexities of cryptocurrency markets. As a senior reporter and analyst, he specializes in crypto analysis and contributes his expertise to notable platforms such as AMBCrypto and FXStreet. In addition to his analytical work, Akash actively trades cryptocurrencies and manages a small crypto fund for friends and family. His role involves providing insightful market analysis and keeping readers informed about the latest trends in the crypto world. Follow Him on Youtube , X and LInkedIn
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Bitcoin
Analyst Points To Key Bitcoin Metric Indicating A Strong Uptrend—$90K in Sight?
Published
2 weeks agoon
October 19, 2024By
adminBitcoin (BTC) has been on an upward trend in recent weeks, showing positive price movements that appear quite appealing to investors.
According to a recent CryptoQuant analysis, a key metric, “active address momentum,” paints a bullish picture for the cryptocurrency.
Active Address Momentum Signals Upward Market Structure
Active addresses represent the number of unique addresses conducting transactions on the Bitcoin network, providing insights into network activity and investor engagement.
By applying a 30-day moving average (30DMA) and a 365-day moving average (365DMA) to this indicator, the CryptoQuant analyst could assess the network’s growing momentum.
The analyst emphasized that the 30DMA has sharply risen recently and is closing in on the 365DMA. If a “golden cross” occurs, where the 30DMA surpasses the 365DMA, it could signal a further bullish trend for Bitcoin, dent reveals.
The CryptoQuant analyst added that Bitcoin has seen high transaction volumes since the second half of the year, supporting increased network activity.
While the current upward momentum is encouraging, the analyst also warned of potential volatility due to a “rising wedge” formation in Bitcoin’s price chart—a pattern that could lead to significant price swings if the wedge continues to tighten.
Bitcoin Rally To $90,000 In Sight?
Bitcoin’s recent price performance has added to the optimism among investors. Over the past week, the cryptocurrency has surged by over 10%, and it has continued its upward trajectory, rising by an additional 1.98% in the past 24 hours to trade at $68,708 at the time of writing.
This upward movement has helped Bitcoin break through a major resistance zone on its daily chart, sparking predictions of even higher prices.
One notable prediction came from crypto analyst Javon Marks, who recently shared his outlook on X. Marks highlighted that Bitcoin has broken out of a “descending broadening wedge” pattern. Statistically, this pattern suggests that when the resisting line is broken, the price objective is reached in 81% of cases.
In Bitcoin’s case, Marks believes that this breakout could push the price of Bitcoin to a range between $90,000 and even more than $96,000.
#Bitcoin (BTC) is now broken out of the displayed ‘descending broadening wedge’ pattern and statistics from this type of pattern states that in 81% of cases, the pattern’s price objective is reached when the resisting line is broken.
Bitcoin’s Price Objective:
$90,000-$96,000+ https://t.co/lPZZtJm7pi pic.twitter.com/hudApLSlDj
— JAVONMARKS (@JavonTM1) October 17, 2024
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