As a seasoned crypto investor who’s been through the rollercoaster ride that is Bitcoin, I must say, this latest development doesn’t surprise me one bit. The dance between BTC and $64K feels like a familiar tango – two steps forward, one step back. However, I’ve learned to take these fluctuations in stride, as they often pave the way for greater gains down the line.
Due to a surge in positive market sentiment, Bitcoin (BTC) attempted to surpass the $64K mark but was unable to maintain its position above it. Consequently, Bitcoin is currently moving back down, and its daily chart suggests a potential bearish trend that may erase the price gains made over the past week.
Bitcoin Price Stumbles At $64K
In recent days, the cryptocurrency market has been buoyant, with Bitcoin’s price surpassing $64,000 on the weekend, causing optimism. This positive momentum carried over into the weekdays, as another surge in buying activity was observed during the US trading session. Looking back, this upward trend propelled Bitcoin further into the $64,000 region, creating a local peak that resulted in a 3.49% decline.
As of Tuesday, October 8, Bitcoin price is up 0.58% and remains indecisive.
Let’s explore why BTC could be crashing.
US-Listed Chinese Stocks Plunge After Historic Rally
After China unveiled substantial stimulus measures towards the end of September, there was a significant surge in the Chinese stock market. This move sparked an unprecedented rise that saw some indices achieve their best returns since 2008. The boost from these stimulus plans propelled the CSI 300, HSI, and SSE Composite up by around 36% and 30%, respectively.
As a researcher, I’ve noticed a significant drop in the performance of US-listed Chinese stocks such as Ali Baba, BiliBili, and Baidu, with declines of 8.9%, 17.2%, and 10.1% respectively. The cause seems to be a slowdown in momentum, according to analysts’ assessments. Furthermore, Hong Kong’s Hang Seng Index (HSI) has experienced its worst performance since 2008, plummeting by 9.5%.
BTC Price Analysis: What’s next for Bitcoin?
According to a past article on CoinGape, the forecast for Bitcoin continues to indicate bearish trends. After surpassing its daily resistance range of approximately $63,900 to $65,000, BTC has quickly retreated by 3.54%.
The Relative Strength Index (RSI) increased from approximately 50 to 65, yet it didn’t reach the overbought threshold of 70. Currently, Bitcoin is valued at around $62,500. Given this, investors should keep an eye on the $61,800 support point, as it served as a significant base last week, contributing to a 4.25% price increase.
Based on the earlier prediction about Bitcoin’s price trend, it appears that a drop below the current level might occur, potentially leading to a 7% decline which should find a balance near the support ranges of $57,900 to $57,200.
Popular Analyst Forecasts New ATH For BTC
Despite a temporary negative trend, crypto analyst Philip Swift points out that focusing on short-term fluctuations when comparing Bitcoin (BTC) and global liquidity is misleading. On the contrary, a broader perspective suggests that the current level of global liquidity has reached an all-time high, which could potentially push Bitcoin to achieve a new record high as well.
For the future of Bitcoin prices, a positive long-term perspective is expected. However, it’s crucial for investors to grasp that the immediate and near-future trends could be uncertain. This is mainly because of several factors such as unpredictable economic policies worldwide, escalating geopolitical conflicts, and increased risk due to ongoing conflicts like the one between Iran and Israel.
Ignoring other factors, if Bitcoin quickly surpasses and reverses the resistance at $65,000 into a strong support level, it would indicate that the bulls are in control. This move would contradict the bearish outlook and potentially push Bitcoin up to $70,000. In certain scenarios, this development might even lead Bitcoin to establish a new record high price.
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2024-10-08 14:02