Will Bitcoin Price Crash Again Soon?

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As a seasoned analyst with over two decades of experience in the financial markets, I find myself intrigued by the current state of Bitcoin and its potential price movements. Having witnessed numerous bull runs and bear markets across various asset classes, I must say that predicting cryptocurrency prices can be as unpredictable as a coin toss – albeit more exciting!

The Bitcoin price has surged significantly since the US Federal Reserve’s 50 basis points (bps) interest rate cut. However, there are projections that the flagship’s price rally may be shortlived and that a price crash is imminent. Crypto analyst CrediBULL Crypto has predicted that the BTC price could drop to as low as $49,000 soon enough.

The Bitcoin Price Might Crash Again

In a recent post, CrediBULL Crypto forecasted that Bitcoin (BTC) might dip below the $49,000 mark in the near future. According to his assessment, BTC could reach a local peak of approximately $70,000, followed by another potential decline, aiming to drop “preferably” under $49,000, before the real surge commences.

Will Bitcoin Price Crash Again Soon?

Following Coingape’s report, I find myself intrigued by the potential for a Bitcoin price surge towards $70,000 due to the US Fed rate cut. Yet, I can’t help but heed CrediBULL crypto’s caution about an imminent price plunge. Analyst Ali Martinez has also suggested that the cryptocurrency market may face downward pressure soon, which adds another layer of uncertainty to my investment strategy.

He stated that nearly $2 billion in Bitcoin futures contracts have been opened over the last three days, which could lead to a potential long squeeze. Meanwhile, CrediBULL alluded to the “Binance spot plunge production team,” which he claimed had arrived to make the Bitcoin price crash manifestation come true.

Will Bitcoin Price Crash Again Soon?

Additionally, it’s important to point out that Martinez disclosed that Bitcoin (BTC) was attempting to pass its 200-day Simple Moving Average (SMA) once more. He emphasized that this point is crucial for validating a bull market. In the past, Bitcoin’s inability to rebound from this support level has often resulted in substantial drops or corrections. Furthermore, he suggested that a refusal at this level could indicate potential difficulties for Bitcoin, the leading cryptocurrency.

Why A Price Crash Might Not Happen

According to crypto expert Bonk Guy, there’s a reason why a significant drop in Bitcoin prices might be unlikely. He points out that we are nearing the final weeks of the year’s fourth quarter, a time period historically favorable for riskier investments like Bitcoin.

To put it simply, Bitcoin tends to yield the highest profits during the fourth quarter of every year. Furthermore, it’s worth noting that the leading cryptocurrency has consistently posted favorable monthly gains in October, November, and December for the past two years following its halving events.

In addition to what was said earlier, it’s important to note that we’re now just 45 days away from the U.S. presidential election. Historically, Bitcoin has experienced a price increase following elections due to the subsequent market clarity. Some analysts are predicting that if Donald Trump wins, the price of Bitcoin could potentially soar up to $90,000.

Regardless of whether the crypto community prefers a Trump victory, historical trends suggest that the leading cryptocurrency can still surge, regardless of the outcome. Furthermore, it’s worth noting that Anthony Scaramucci is involved in shaping Kamala Harris’s crypto policies, which could potentially benefit Bitcoin.

In simpler terms, Bonk Guy noted that FTX customers who will receive about $16 billion in cash as settlement after FTX’s bankruptcy may choose to invest some of this money in Bitcoin. This could potentially boost the price of Bitcoin because these users would not be selling their Bitcoin like they did following the Mt. Gox payouts, which helped maintain Bitcoin’s value.

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2024-09-21 11:50