Bitcoin Price Predicted to Decline, According to Algorithms
Despite the recent approval of multiple spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), the cryptocurrency market remains bearish, as indicated by machine learning and artificial intelligence (AI) algorithms.
A recent analysis from the cryptocurrency market analytics and prediction platform CoinCodex predicts that the price of Bitcoin could drop to $35,808 by February 1, 2024. The algorithm used historical Bitcoin price data, taking into account past volatility, market movements, and the cyclical nature of Bitcoin halvings to create this projection.
Bitcoin Price Analysis
Currently, Bitcoin is priced at $39,879, with a 2.44% increase in the last 24 hours. It aims to recover from a 6.65% drop in the previous seven days and an 8.31% decline on its monthly chart.
The technical analysis tools on TradingView suggest a slightly more optimistic outlook for Bitcoin in the short term. The moving averages point to a ‘strong buy’ signal at 11, while oscillators indicate a ‘neutral’ zone at 9.
The Future of Bitcoin
Overall, AI and machine learning algorithms do not project a bullish trend for Bitcoin in the near future. However, analysts believe that the upcoming halving event in April 2024 could lead to significant gains in the long run. There is even speculation about a potential parabolic rally in 2025.
Hot Take: Bitcoin’s Price Forecast Remains Uncertain
The approval of spot Bitcoin ETFs by the SEC has not triggered a substantial rally in the cryptocurrency market. Algorithmic predictions suggest a potential decline in Bitcoin’s price. While short-term indicators show some optimism, the overall sentiment remains bearish. However, the upcoming halving event in 2024 could be a turning point for Bitcoin’s price trajectory. It remains to be seen whether Bitcoin will experience significant gains in the long run and potentially witness a parabolic rally in 2025.