Bitcoin tokens are below $60,000, exchanging hands at $56,473.39 at the time of writing this article. Prior to rate cuts, there was speculation that they would continue to rise or at least experience slight declines. However, the fall is now bigger than expected. Analysts have expressed their belief that further declines are likely unless a breakthrough occurs at $68,000. Given the speculation that BTC will breach $67,000 in the next 5 days, such a dream is not entirely unrealistic. That would set the stage for achieving the noted trendline.
Source: Trading View
The trendline was recently drawn for the months of March-April 2024. The line consistently dips, demonstrating that dips may continue to dip for some time.
Crypto enthusiasts are looking at the ongoing scenario from a more practical lens. Most of them have linked the decline to a price correction prior to its remarkable surge. Fueling this is the anticipation of a 25 bps rate cut by the Federal Reserve. In this way, investors’ confidence is increased, enabling them to inject liquidity into risky assets.
One of the predictions for BTC is that the price of $40,000 is easily within reach. The alternate BTC prediction suggests a possibility of $50,000, given the September price lows correspond to the expected 20% drop. Fluctuations are more likely to occur within the range of 15-20 percent. This means that the price could fall by 15% to 20% before rising again in a similar pattern.
The community believes that fluctuations could also occur as part of a broader trend, with BTC frequently experiencing high volatility in September. Reports indicate an average return of approximately -4.78% as the summer concludes and human activities resume. September can also deliver high returns if the trend ever turns to the opposite side. A precautionary move is further recommended due to the volatile scenario across the US that arises from the political events.
There is an underlying opportunity for Bitcoin, with several TradFi companies expressing interest in transacting using the flagship token. Howard Lutnick, the Chief Executive Officer of Cantor Fitzgerald, brought this to light through a post on X. Howard further stated that the current requirements of US regulators are the only thing holding companies back.
He now has plans to open a Bitcoin financing business with a lending capacity of $2 billion. It will provide leverage to the holders of BTC.
As for the trendline, analysts say that the principle applies only to Bitcoin breakout traders. Other investors may continue with their respective strategies, including HODL because the token is expected to generate returns in the future. It has set its sights on breaking the mark of $84,000. There is nothing to deny the possibility that it would soon sur $155,000, potentially by the end of this year, that is, 2024.
