Bitcoin Shakeout Ahead: Analysts Predict Final Dip Before Bull Run Resumes
10 Settembre 2024 - 8:52PM
NEWSBTC
The Bitcoin market has seen some consolidation since Monday,
maintaining a price above the $56,000 mark after a brief drop from
$65,000 to around $52,600 last Friday. However, one analyst
suggests that the bearish sentiment may still be ongoing, with
expectations of a potential revisit to lower levels before a
significant upward movement. BTC’s Future Price Action In Focus
Crypto analysts known as “VirtualBacon” on X (formerly Twitter)
have raised concerns about an impending “huge Bitcoin shakeout.” In
the coming 2-3 weeks, the analyst explains that Bitcoin could
experience one last decline before initiating a bull run.
“Panic is everywhere—people are calling for lows in the $40,000s,
claiming the bull run is over,” VirtualBacon noted. Yet, he argues
that whether Bitcoin dips to $45,000, $48,000, or even $43,000, a
bull run remains on the horizon. This period often sees a shakeout
of many holders right before significant rallies. Related Reading:
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Bullish Momentum While the current charts indicate lower highs and
lower lows, suggesting a downtrend, VirtualBacon believes that a
prolonged bear market appears unlikely. The primary driver of this
sentiment is the anticipated liquidity injection and interest rate
cuts by the Federal Reserve, conditions that typically favor a bull
run, particularly looking ahead to 2025. Another crucial aspect of
VirtualBacon’s analysis lies in Bitcoin’s key support level—the
100-week Exponential Moving Average (EMA). This level has
historically marked the end of bear markets, with Bitcoin bouncing
off similar levels in 2015 and 2019. Currently, this support
level sits around $45,000, with various technical indicators,
including Fibonacci retracements and high-volume nodes, suggesting
strong support in the $43,000 to $49,000 range. Even if Bitcoin
does dip into this range, the analyst believes it would likely be a
temporary “wick” rather than a sustained drop. VirtualBacon also
highlights that some traders speculate about around $50,000 to
$51,000. However, this could be risky; a touch at these levels
might trigger a cascading liquidation event that could push prices
to $44,000. How Upcoming Fed Decisions May Fuel Bitcoin Bullish
Momentum Historically, September has been a weaker month for
Bitcoin. However, the upcoming months—October, November, and
December—tend to show more bullish trends. VirtualBacon notes that
over the last decade, eight out of ten Octobers have ended
positively for Bitcoin, with November also historically strong. The
backdrop of this market analysis coincides with the Federal
Reserve’s upcoming Federal Open Market Committee (FOMC) meeting,
where the analyst predicts a 70% chance of a 25 basis point rate
cut and a 30% chance of a double cut. VirtualBacon notes that
this could initiate a 12-month liquidity injection cycle that
typically boosts risk assets like BTC and propels the leading
cryptocurrency above current all-time high levels of $73,700.
Related Reading: Ethereum In 3 Months: Legendary Analyst Reveals
Prediction For December Despite the prevailing fear in the market,
as the Fear and Greed Index indicates, the analyst argues that this
fear may be irrational, especially with the impending monetary
policy shifts. As the Fed begins to cut rates, sentiment is
expected to shift rapidly, potentially leading to renewed interest
and investment in Bitcoin. BTC trades at $56,930 when writing,
recording a slightly 0.7% gain in the last 24 hours. Featured image
from DALL-E, chart from TradingView.com
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