Bitcoin Analyst Predicts Bearish Outlook Pending Bullish Breakout
Amidst the current price dip, one analyst predicts a bearish outlook for Bitcoin unless bulls can make a significant move in the market. The short-term trend is currently leaning towards sellers, with a rapid shift in trend needed to favor buyers. Failure to absorb the selling pressure might result in further price declines, as predicted by the analyst.
Technically, Bitcoin is currently in a bearish formation, showing occasional moments of strength. However, buyers have been unsuccessful in pushing prices past key levels, such as $60,000. In the medium term, the immediate support level stands at $49,000 and August lows, with buyers needing to regain momentum to surpass $72,000 to shift the current price action.
The current state of price action is hindering bullish movements, with the analyst maintaining a bearish stance until Bitcoin breaks above $68,000. However, with the price currently around $10,000 away from this crucial level, it poses a significant challenge for optimistic traders.
- If buyers fail to overcome the resistance trend line and surge past $72,000, prices are likely to continue on a downward spiral according to the analyst.
Factors to Watch: Inflation, Federal Reserve, and Spot ETFs
Despite prevailing fears, analysts anticipate that fundamental factors will provide support for Bitcoin prices in the near future. A key factor to watch is the recent evolution of inflation in the United States. As inflation rates decline, the United States is expected to cut interest rates for the first time in over two years in September, which could have a positive impact on Bitcoin prices.
Given the historical trend of crypto prices following interventions from 2019 to 2020, Bitcoin prices are likely to benefit from the upcoming policy changes. Additionally, the approval of spot Bitcoin ETFs in January is expected to increase the asset’s valuation and attract institutional investors, potentially driving Bitcoin to new all-time highs.
- With spot Bitcoin ETF issuers in the United States managing over $52.6 billion worth of the coin, the market is poised for significant growth and institutional involvement.
Hot Take: Analyst Predicts Bearish Stance Until Bullish Breakout
Bitcoin’s current price trajectory remains below $60,000, with a bearish outlook projected by an analyst amidst the ongoing market conditions. While there is optimism for a bullish breakout in the near future, the analyst maintains a cautious stance until key resistance levels are surpassed for a sustainable bullish trend to emerge.
Stay updated on the latest market developments and potential breakout opportunities to make informed investment decisions in the dynamic cryptocurrency market.
Sources:
– X – Analyst Report
– Soso Value – Spot Bitcoin ETF Data
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