Bitcoin Price Falls To $103,000: Is This The End Of The Bull Run Or A Prequel To The Next Surge?
On Friday, the Bitcoin value skilled one other flash crash, dipping towards $103,000 from $109,300. While not as alarming because the sharp decline seen on October 10, this newest downturn has ignited recent hypothesis concerning the cryptocurrency’s future trajectory.
A Temporary Setback?
Comparisons are being made to previous market crash occasions, such because the COVID crash in 2020 and the downturn in May 2021. However, market skilled VirtualBacon emphasizes that the present scenario is basically completely different.
The skilled famous that in 2020, a widespread collapse affected numerous property, together with shares, gold, and Bitcoin. By 2021, Bitcoin was already in a downtrend. In distinction, as we speak, whereas the Bitcoin value has confronted challenges, shares and gold are holding regular and even rising.
He believes that the current struggles within the crypto market seem to stem from a singular credit score occasion somewhat than a broader macroeconomic meltdown, as extreme leverage was worn out within the course of.
Despite the current volatility, VirtualBacon highlights that Bitcoin’s underlying construction stays wholesome. The cryptocurrency lately touched the 20-week moving average and bounced again. Moreover, the 50-week easy transferring common, which resides round $102,000, has but to be breached, even amidst this newest drop.
According to VirtualBacon’s evaluation, till the Bitcoin value closes under the $100,000 mark, this downturn must be seen as a correction inside an ongoing bull market somewhat than a definitive prime.
Is The Bitcoin Price Poised For A Recovery?
Seasonality additionally performs a task in these traits: October sometimes sees chop, with altcoins lagging behind Bitcoin, whereas November and December are sometimes characterised by altcoin rallies.
Despite the current flush, VirtualBacon asserted that the market dynamics haven’t basically modified; it could have even accelerated a reset in sentiment, clearing out leverage to return to cycle lows.
Meanwhile, macroeconomic elements are quietly turning bullish. Recent forecasts point out that two fee cuts at the moment are priced in at 96% for the upcoming Federal Open Market Committee (FOMC) conferences on October 28-29 and December 9-10.
VirtualBacon outlines a transparent plan transferring ahead: Bitcoin is anticipated to consolidate between $110,000 and $125,000. A break above the $125,000 to $130,000 vary might sign the beginning of a brand new altcoin season.
Contrastingly, some specialists, reminiscent of Doctor Profit, categorical a extra pessimistic outlook for the Bitcoin value. He has persistently argued that the crypto costs are merely within the early phases of a bear market, which frequently begins with a collection of false pumps adopted by sharp declines, a sample that aligns with the occasions of final week.
It stays to be seen which path the Bitcoin value will take subsequent. For now, the cryptocurrency has recovered barely from Friday’s drop to round $106,620.
Featured picture from DALL-E, chart from TradingView.com
