Cryptocurrency
Bitcoin price prediction – “Will Bitcoin go back to the low”? Why the asset risks falling in price again
Experts explain what’s causing the rise in Bitcoin prices today and what events may affect the market soon. On July 29, Bitcoin reached a 1.5-month high of $24.4 thousand; its price went up by 5% per day, and by more than 26% over the month. Ethereum price rose to $1.77 thousand, showing a monthly increase of 70%. Current Bitcoin price is around $23,650.
Bitcoin price prediction
The largest altcoins by capitalization are also rising in price, and the total estimate of the cryptocurrency market exceeded $1.41 trillion, while a month ago it was $946 billion.
The rise in cryptocurrency prices accelerated on the evening of July 27, when the Federal Reserve announced a 75 basis point rate hike. Also, the appearance of precise dates for Ethereum’s transition to the Proof-of-Stake protocol had a positive impact on some token prices.
What factors are affecting the crypto-market at the moment, and what may be the dynamics of rates soon?
Downward pressure
The main reason for the growth of the CFA market in recent days is fundamental pressure on the market by the U.S. Federal Reserve. Tightening of the monetary policy occurs softly, without dramatic raises of rates over the forecasts.
Decreased pressure of authorities together with low rate of taper (gradual reduction of economic stimulation by central banks) allows cryptocurrency investors to increase volume of purchases without fear of price fall because of actions of regulators.
In the case of a positive scenario, Bitcoin may test the $30,000 level. The current volume of purchases and activity in the networks will not allow the price to grow significantly. As we remember, Bitcoin prices all-time high in 2021. Before we see the market rise to historic highs, the price could still fall this year. Therefore, I recommend buying cryptocurrency at current prices with an eye on the fact that there is a possibility of a price correction after the rise.
Intermediate Bottom
The corrective channel that started with the lowest prices in June emerged as an intermediate stop before further declines. This was confirmed by the price exiting through the upper boundary and returning back. Quotes were already moving to the lower boundary, but the situation became more complicated. Now there was another exit over the upper boundary, but it happened in the absence of the necessary conditions for growth.
The ascending wedge on the Bitcoin price chart, which indicates a limited upside potential. The price is on top, which does not allow an upward movement to develop. Globally, the situation has not changed, but further downward hikes will be possible already in the new formation.
The current price impulse has occurred without any serious reason, and soon nothing special is expected. Negative influence can be made by such factors as investigations concerning Coinbase or legislative decisions on stablecoins in the USA.
But the impact of external factors should not be overestimated, because the crypto market only matters supply and demand, not reporting, like the stock market, the expert said. He suggested that the increase in rates could simply contribute to large purchases in a situation of reduced liquidity.
Bitcoin prices by the end of 2022: Downside risks exist
In the coming weeks, the main focus of market players is on Ethereum’s transition to the PoS version, which will make adjustments to the activities of miners and investors around the world. The overall outlook for Ethereum is assessed positively. But the current growth in the value of ETH will probably not be unstoppable: there are risks of falling prices amid the problems of ETH 2.0.
Market participants are upbeat now, despite the recession risks in the US. The U.S. inflation data, which will be released in mid-August, will be slightly better than forecasts, and this will entail a positive reaction of the economy to the Fed’s actions. These events will cause stock markets to rise, which will also support crypto-asset prices.
If inflation data turns out to be bad, it will cause a flight out of risky assets, a drop in stock markets and an expectation of tougher Fed action. This is what could momentarily put pressure on cryptocurrency, causing prices to return to their sideways rally without a surge.
Now the main task of sellers is to prevent the enthusiasts, who bought Bitcoin at the exit of the channel for the first time (in mid-July), from making money. This means a possible movement downwards and fixing of stop-orders at $21K. After that, the support level will be broken and the rate will go down: at first, towards $19K and then to the local minimum of $17.5K. Well, the price growth up to $100K is rather Bitcoin price prediction 2025.
Cryptocurrency
‘Normal’ Correction or Bull Market End for Bitcoin and Crypto?
The landscape in the cryptocurrency space can change drastically in days. Recall that bitcoin tapped a new all-time high of over $108,000 on Tuesday, but its price has slumped to $94,500 since then.
This came after a few remarks by Federal Reserve Chair Jerome Powell, who warned that the central bank could not purchase BTC despite Trump’s promises and that there might not be any more key interest rate reductions in 2025.
With bitcoin reacting the way it did to those comments, this has led to speculations among the crypto community about whether this is just another ‘normal’ correction during a bull market cycle or whether the asset’s post-Trump-victory honeymoon is over.
Bull Market’s End Side
Even before Donald Trump’s decisive victory, BTC’s price had already started to appreciate after the US Federal Reserve pivoted from its previous monetary strategy and started lowering the interest rates. In fact, the first cut was the deepest, as they say, when the central bank reduced the rates by 50 basis points.
Riskier assets such as bitcoin reacted with immediate price increases. However, the Fed’s policy seems to have a bigger impact on the asset’s price movements than many anticipated.
After all, the expected 25 basis point reduction from Wednesday didn’t lead to another price increase. Just the opposite, the central bank’s warning about another potential reversal in its strategy resulted in a bloodbath for BTC and the entire crypto market.
Consequently, those who argue that the bull market might have ended received some validation. In case the Fed indeed stops cutting the rates, BTC’s bull market might come to a screeching halt. Powell’s actions have already changed US investors’ behavior toward the cryptocurrency, as the spot Bitcoin ETFs recorded their worst day in terms of net outflows since their inception nearly a year ago.
Some analysts believe the $94,000 support zone is crucial for bitcoin, which is close to being tested now. If lost, the asset could plummet to $90,000 and even $80,000.
Just a Correction Side
Captain Faibrik also outlined the $94,000 support line as crucial during this correction. They told their 100,000 followers on X that such a price drop to that line would be a “healthy reset” and it could propel the asset in the opposite direction and continue its months-long rally.
$BTC #Bitcoin Correction is almost Done..!! https://t.co/GXWt21b5o6 pic.twitter.com/4d9QPO3kuk
— Captain Faibik (@CryptoFaibik) December 20, 2024
Crypto_Rover was also on the ‘just a correction’ side, claiming that this is the ‘final bear trap’ and investors should not be shaken out.
If you survived the #Bitcoin bear market…
Don’t let this final bear trap shake you out this bull market.
Don’t give up now.
The next 3 months can truly change your life.
— Crypto Rover (@rovercrc) December 20, 2024
In any case, it seems as if the $94,000 support will indeed be vital for BTC’s upcoming price movements. It was tested on a couple of occasions last week and bitcoin is close to doing it again. Recall that the cryptocurrency bounced off after the second such test on December 10 and marked a new all-time high just a week later.
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Cryptocurrency
Why is the Ripple (XRP) Price Down Today?
TL;DR
- XRP experienced a sharp decline, briefly falling below $2.20 following a broader crypto market correction.
- Despite the dip many analysts foresee the asset rebounding to targets as high as $5, with some projecting even greater peaks if a FOMO-driven rally occurs.
XRP Follows the Market Decline
Despite the enhanced volatility, the first half of December has been quite successful for Ripple’s XRP. At the start of the month, its price surpassed a multi-year high of $2.80, while at the beginning of this week, it consolidated above $2.50.
However, things took a sudden turn on December 18, with XRP plunging below $2.30. Several hours ago, the valuation dipped under $2.20. Currently, XRP is around $2.23 after a slight rebound, which represents a 6% decline on a daily scale.
Perhaps the most obvious factor that has impacted the price of the token is the severe correction of the entire cryptocurrency sector. The global crypto market capitalization is down almost 9% in the last 24 hours, currently set at around $3.42 trillion (CoinGecko’s data).
Bitcoin (BTC), which hit a new all-time high of over $108,000 on December 17, is now worth less than $96,000. Ethereum (ETH) tumbled below $3,300, while Solana (SOL), Dogecoin (DOGE), Cardano (ADA), and many more are down by double digits.
The market started bleeding heavily shortly after the Federal Reserve announced its latest interest rate cut. It reduced the benchmark by 0.25%, but Jerome Powell hinted that next year, the policy might be halted due to an increase in the inflation rate.
In addition to that, the spot Bitcoin ETFs witnessed their biggest outflows in a single day. As CryptoPotato reported, over $670 million were withdrawn from the financial vehicles in total on a 24-hour scale, with Fidelity’s FBTC and Grayscale’s BTC leading the pack – $208.5 and $188.6 million, respectively.
XRP’s Next Potential Targets
Despite the substantial plunge, numerous analysts remain optimistic that XPR’s bull run is far from over. The popular X user Crypto Bitlord believes the latest correction has represented a local bottom, after which XRP could surge to as high as $5.
Other market observers who recently chipped in are Dark Defender and Armando Pantoja. The former set $5.85 and $8.76 as short-term targets, while the latter assumed XRP could be headed toward $2.78 and then $3.87. Pantoja went even further, predicting a mass FOMO effect if the price reach $10-$12, and “that’s when it will get crazy.”
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Cryptocurrency
Bitcoin Could Skyrocket by 25% in Days if History Repeats But There’s a Catch: Data
Bitcoin’s massive rise from under $70,000 to over $108,000 within a month and a half after Donald Trump’s landslide victory in the US presidential elections left some investors outside the circle.
However, the ever-volatile nature of BTC always leads to substantial corrections that provide opportunities for those who missed the initial train to get on board. In the past couple of days, bitcoin’s price tumbled by double-digits, which, according to Santiment, has made the crowd seek to buy the dip.
Moreover, history shows that it could send BTC flying again.
Is BTC About to Bounce?
As the analytics platform noted, the last time these discussions exploded in a similar manner was in early August when the cryptocurrency’s price tumbled below $50,000. Just a few days later, though, the asset had climbed by over 25% to beyond $62,000.
If history is to repeat itself now, even though BTC’s market cap is a lot higher, bitcoin could recover from its big retracement and head toward a new all-time high again of over $120,000.
With Bitcoin falling as low as $95.5K today, the ratio of crypto discussions that are about buying crypto’s dip has reached its highest level in over 8 months. The last time we saw the crowd nearly this enthusiastic about dip buying was the major crash on August 4th. Since… pic.twitter.com/39NlpnGMCs
— Santiment (@santimentfeed) December 20, 2024
Not So Fast
Although the ‘buy-the-dip’ history shows that BTC’s correction could be over, this narrative is not supported by other on-chain and technical metrics, such as one particular demand zone.
IntoTheBlock posted even before bitcoin lost the $100,000 mark decisively yesterday that such an area had formulated at around $97,500, given the large number of investors purchasing at such prices more than 1.4 million BTC. These accumulations turned that level into an ‘important’ support zone, which has now been broken to the downside.
Once such vital support lines are breached and investors who had entered recently see their positions in the red, at least on paper, many tend to dispose of their holdings, which leads to more intense selling pressure for the underlying asset.
Will Bitcoin retrace below $100k?
Interestingly, a significant demand zone has formed just under $100k.
Over 1.45 million BTC was accumulated at an average price 97.5k, making this an important potential support zone. pic.twitter.com/vDcHEl8OKV
— IntoTheBlock (@intotheblock) December 19, 2024
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