Altcoins
Bitcoin (BTC) Price Could Spark a Bull Run in August: Here’s Why
Bulls and Bears: Everyone Needs to Take Note!
Bitcoin (BTC) recently faced a significant price rejection near the $59k mark, resulting in a 2.1% decline in the past 24 hours. This decline has intensified concerns about a potential further cryptocurrency market capitulation. As Bitcoin lingered around $57,300 early Friday during the New York trading session, the Fear and Greed Index plummeted to 25, signaling extreme fear among investors.
Let’s dig deeper to find out what analysts are saying about the future of Bitcoin and whether this latest drop is cause for serious concern.
Bears weigh a lot
The growing apprehension is rooted in Bitcoin forming a medium-term bearish signal, which suggests a potential decline towards $50,000 in the coming weeks. Over the past four months, Bitcoin has shown a possible double top pattern, accompanied by a bearish divergence in the weekly Relative Strength Index (RSI).
If Bitcoin fails to reclaim support above $61,000 soon, it is reasonable to consider $73,000 as the recent peak.
Institutional Accumulation Amid Market Uncertainty
On-chain data reveals that institutional investors and large holders have increased their accumulation of BTC in the past month. Furthermore, recent US economic data indicating a cooling of inflation could pave the way for expected interest rate cuts later this year. Long-term Bitcoin holders have absorbed the increasing selling pressure from entities such as the German government and Genesis Trading.
Arkham Intelligence reports that a Bitcoin address linked to Genesis Trading dumped 12k BTC last month. The bankrupt company currently holds about 33k Bitcoin, worth about $1.9 billion, which is expected to be liquidated in the coming months.
Future outlook: bullish trend resumes?
Crypto influencer Open4Profit predicts that the price of Bitcoin will resume its upward trajectory in the fourth quarter, following a period of consolidation.
The analyst believes that Bitcoin will likely reclaim the 200-day moving average (MA), mirroring a similar pattern seen in October of the previous year.
Read also: Here’s Why Bitcoin Is Set To Surpass $60,000 Next Week!
Only time will tell whether the bulls or the bears will dominate in the coming months.