Bitcoin Facing Possible Massive Correction
After a strong rally, Bitcoin is now at risk of a significant correction, warns analyst Justin Bennett. Staying above $43,300 is crucial for Bitcoin’s current state. Rising network fees and debates over Bitcoin Ordinals and BRC-20 tokens further complicate the crypto landscape.
Bitcoin on the Verge of Correction
Bennett’s less optimistic outlook suggests that Bitcoin’s price below $43,300 is not favorable. He points out a possible lower high forming and weighs on the trend line support. The next stop could be $38,000 if the break sustains. There is also potential risk-off scenarios if the dollar continues to firm up above the 102 support.
Bitcoin Witnessing Rising Fees
The Bitcoin mempool is currently experiencing severe congestion, with unconfirmed transactions surpassing 249,000. The surge in Ordinals inscriptions contributes to this congestion, representing over 50% of daily transactions on the network. On-chain fees have reached an average of $27.55 per transaction.
BTC Price Analysis and Forecasts
Currently priced at $41,700, Bitcoin has seen a 5% decline in the past seven days. Bitget Research predicts a promising outlook for BTC in 2024, with potential appreciation and growth in the Bitcoin NFT market and Lightning Network adoption. Industry figures like Mike Novogratz and Ryan Lee offer contrasting perspectives on Bitcoin’s future, with projections ranging from $70,000 to $100,000 by the next bull market.
Standard Chartered Projects Bullish Trajectory for BTC
Standard Chartered believes Bitcoin will reach the $100,000 milestone by the end of 2024. Geoff Kendrick, the Head of Digital Assets Research at Standard Chartered, emphasizes the bank’s unwavering confidence in Bitcoin’s future. The bank previously suggested a potential upward revision to $120,000 by the end of 2024.
What’s Next
The crypto sector is eagerly awaiting U.S. regulators’ decision on approving a physically-backed Bitcoin ETF. Various asset managers, including ARK Investment and 21Shares, have applied for approval. Whether an ETF will meet investor expectations remains uncertain.
Hot Take: Bitcoin’s Future Hangs in the Balance
The recent rally has put Bitcoin at a crossroads, with a possible correction looming. Rising network fees and debates over tokens add to the complexity of the crypto landscape. Analysts have differing opinions on Bitcoin’s future, with projections ranging from $70,000 to $100,000 and beyond. As regulatory decisions on Bitcoin ETFs approach, the industry holds its breath to see if this milestone will be achieved. Standard Chartered remains bullish on BTC, projecting significant growth and expressing confidence in the cryptocurrency’s trajectory. The coming months will determine whether Bitcoin can maintain its momentum and continue its upward trajectory.
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