Bitcoin Showing Signs of Resistance at $45K Mark
Bitcoin is currently showing resistance at the $45,000 mark, prompting speculation about a potential pullback, especially as the options market hints at a push toward the $50,000 handle. However, analysts at CryptoQuant, a respected market analysis firm, anticipate a positive trajectory for Bitcoin’s value in the early months of 2024.
Analysts Predict Bull-Bear Market Cycle for Bitcoin
CryptoQuant analysts predict that based on various metrics like market capitalization, user activity, transaction volume, and the Metcalfe price valuation band, Bitcoin could reach a range between $50,000 and $53,000 in the coming months. The bullish outlook is also supported by the evaluation of the “Bitcoin bull-bear market cycle indicator,” which suggests a full bull market but also an “overheated bull phase” that historically led to price rally pauses or corrections.
Short-Term Correction Expected Before Bull Run
While optimistic about Bitcoin’s trajectory, CryptoQuant’s report also warns of potential short-term corrections. Concerns about market tops or temporary declines arise from the fact that 86% of the circulating Bitcoin supply is currently in a profitable state. Additionally, elevated funding rates contribute to the possibility of a short-term market correction, although overall market sentiment toward Bitcoin remains positive.
Bitcoin’s Potential to Reach $120K by 2024
Standard Chartered, a leading UK bank, has offered a more bullish projection, suggesting that Bitcoin’s value could skyrocket to $120,000 by the end of 2024. They attribute this potential surge to enhanced profitability for Bitcoin miners, as they might earn more for each Bitcoin they mine and subsequently sell less, leading to a decrease in available Bitcoin supply and driving its price higher. Overall, there is optimism in the market, particularly if ETFs are approved, with previous occurrences of BTC surges serving as a reference.
Hot Take
Bitcoin is currently facing resistance at the $45,000 mark, prompting speculation about its next move. Analysts are optimistic about its trajectory, with potential bull markets and short-term corrections expected. With the possibility of reaching $120,000 by 2024, Bitcoin’s future looks promising, especially if ETFs are approved. The current value of Bitcoin is $43,697, but the potential for further growth remains high.
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