Key Takeaways
- Bitcoin (BTC) is currently trading above $109,000, showing a 1% increase in the past 24 hours.
- Analysts from Standard Chartered predict that BTC’s price might briefly dip below the $100,000 mark before continuing its upward trend.
- Concerns over macroeconomic factors, particularly renewed US-China trade tensions, have impacted recent Bitcoin rallies.
- Potential catalysts for a near-term Bitcoin price surge include a sell-off in gold, suggesting a potential rotation into riskier assets like cryptocurrencies, and anticipation of further interest rate reductions by the Federal Reserve.
Bitcoin’s Potential Dip Below $100,000
Bitcoin has experienced significant volatility this month. After reaching a new all-time high of $126,000, the cryptocurrency saw a sharp decline to the $102,000 level. This downward movement occurred shortly after a substantial liquidation event on October 10th, and the price has struggled to regain its previous momentum.
Standard Chartered’s head of digital asset research, Geoffrey Kendrick, shared insights with investors, forecasting a potential short-term dip for Bitcoin below the $100,000 threshold by the weekend. Kendrick emphasized that while this decline appears inevitable, it is expected to be temporary.
The question now is, how far does Bitcoin fall before finding a base?
He suggested that this could be the last opportunity for investors to acquire Bitcoin below the significant $100,000 level. Kendrick attributed the failure of Bitcoin to sustain its rally beyond the October 6th all-time high to escalating macroeconomic concerns, exacerbated by renewed trade tensions between the United States and China.
Factors Influencing Bitcoin’s Trajectory
Standard Chartered analysts have identified several factors that could positively influence Bitcoin’s price in the near future. One significant factor is the recent substantial sell-off in gold this week. This movement could signal a potential rotation of investment funds from traditional safe-haven assets like precious metals into riskier assets, including cryptocurrencies.
The second influential factor revolves around monetary policy. Indications that the Federal Reserve might consider another interest rate reduction could further fuel a Bitcoin rally. Kendrick remains optimistic about Bitcoin’s long-term potential, maintaining his projection that the cryptocurrency could reach $200,000, even amidst current market conditions.
Market Sentiment and Technical Outlook for BTC
Despite a recent 1% gain in value over the last 24 hours, the BTC/USD 4-hour chart currently indicates a bearish but efficient market state. As of this report, Bitcoin is trading around the $109,650 mark. However, short-term indicators suggest the possibility of a higher rally.
💡 The Relative Strength Index (RSI) reading of 51 suggests that buyers are beginning to regain control of the market momentum. Furthermore, the Moving Average Convergence Divergence (MACD) lines are positioned within positive territory, reinforcing the optimistic sentiment.
📊 If the current recovery trend persists, Bitcoin may target the weekly high of $113,964 in the coming hours. A sustained bullish run could potentially push the price beyond the Immediate Liquidity Zone (ILQ) level of $116,000. Conversely, if the bearish trend reasserts itself, Bitcoin could experience a decline below the weekend low of $105,000.
Expert Summary
Standard Chartered analysts foresee a potential short-term dip for Bitcoin below $100,000, viewing it as a temporary market correction before a resumption of its rally. Factors such as a shift from gold and potential Fed rate cuts could drive future price increases, with some analysts maintaining a long-term target of $200,000 for BTC.