Although Bitcoin was struggling last week, the investors were confident that the price will continue increasing as long as Bitcoin is above $30,000. And the hopes went even higher when Bitcoin tried to break out of the resistance on Thursday. But the investors became disappointed when Bitcoin experienced massive selling pressure on the same day and ended up closing negatively.
Investors have again become confused about which direction Bitcoin may take over the coming days. The most important part is that the volumes are consistently drying up. It means bigger investors aren’t making a significant contribution at the moment. The situation will become clearer once the volumes start adding up.
The following Bitcoin weekly news may shed some light on where Bitcoin’s price may head over the coming weeks.
Key Takeaways: –
- Bitcoin’s price is struggling to stay above $30,000, leaving investors uncertain about its future direction.
- Standard Chartered predicts that Bitcoin could reach $50,000 by the end of this year and $120,000 by the end of 2024. They attribute this to miners hoarding more BTC tokens as mining rewards reduce, creating a supply-demand gap.
- Upcoming events, such as speeches from Federal Reserve officials and U.S. macroeconomic data releases, may impact Bitcoin’s price and cause volatility.
- Despite the stagnant price, Bitcoin’s mining difficulty and hash rate are reaching new highs, and institutional investors are accumulating Bitcoin.
Bitcoin Price Prediction by Standard Chartered
In April 2023, Standard Chartered published an update about Bitcoin’s price saying that Bitcoin will hit a target of $100,000 by the end of 2024. But they’ve now updated their prediction saying that bitcoin will potentially reach $50,000 by the end of this year and it will eventually reach $120,000 by the end of 2024.
They’ve backed this claim by stating the fact that miners will start hoarding more BTC tokens once the mining rewards reduce. It will create a gap between supply and demand which will ultimately lead to a strong price pump.
Upcoming Events May Affect Bitcoin’s Price
Bitcoin is continuously struggling to stay above $30,000 and several warning signs have also appeared on Bitcoin’s price charts recently. Therefore, some traders have now started predicting that Bitcoin will potentially experience a retracement before resuming its bullish trend.
Bitcoin’s price may show some volatility following several upcoming events including speeches from Federal Reserve officials and U.S. macroeconomic data releases. Similarly, the Consumer Price Index (CPI) is an important aspect that may significantly affect Fed’s stance on interest rates.
But it’s also worth noting that the mining difficulty and hash rate of Bitcoin are set to reach new all-time highs. Similarly, more institutional investors are now accumulating Bitcoin despite its stagnant price. Furthermore, Bitcoin is heading towards a potential supply shock because the supply of available BTC tokens is decreasing gradually.
Bitcoin ETF May not Leave a Significant Impact on Crypto Industry
Most investors are confident that a spot Bitcoin exchange-traded fund (ETF) may lead to bullish momentum. But Nikolaos Panigirtzoglou, the JPMorgan managing director, has claimed that such kind of ETF will not leave a significant impact on Bitcoin. He has supported his claim by highlighting the examples of similar ETFs in Canada and Europe that couldn’t make a huge impact.
However, traditional aspects like the current state of the labor market may affect the crypto market because these factors also affect the stock market and other risk assets. So, the investors need to focus on these elements instead of waiting for an ETF.
Bitcoin and China’s Producer’s Price Index (PPI)
China’s producer price index (PPI) has highlighted some positive news for risk assets showing that the global liquidity-tightening cycle is nearing its end. This cycle negatively affected a range of risk assets including cryptocurrencies. The producer price index has consistently declined during the past nine months.
And on a yearly basis, PPI has fallen by 5.4% which is the largest drop in the seven years. It means that the global economy is about to experience deflationary pressures. The Western central banks, which have been aggressively raising interest rates to handle the high inflation levels, may also experience a sigh of relief following persistent deflation in China.
However, Bitcoin and S&P 500 index haven’t yet shown any significant impact of the Chinese PPI. A reversal in bond yields may trigger an upward move in Bitcoin and other cryptocurrencies.
Bitcoin Analysis by CryptoCon
CryptoCon, a renowned technical analyst, has shared some insights about Bitcoin’s upcoming movement. The analyst has made a positive prediction about Bitcoin after observing the performance of several technical indicators. The analyst has primarily talked about the Bollinger Band Width indicator that has entered a low volatility zone.
The analyst then backed his analysis by showing the historic movement of this indicator from 2017 and 2021. Therefore, he believes it’s a bullish sign for Bitcoin. Factors like the approval of a spot Bitcoin ETF and the involvement of traditional financial giants may push Bitcoin’s price higher.
Bitcoin experienced a more than 13% increase in its price following the news of BlackRock’s filing for a spot ETF. The seasoned Bitcoin holders have been booking profits lately which indicates an early phase of a bull cycle. Similarly, the selling pressure has significantly declined. It means more investors are interested in accumulating Bitcoin at current levels.
During the past week, whale activity has slightly declined which shows that whales also have confidence in the long-term growth prospects of Bitcoin.
Bitcoin Weekly Technical Analysis
The rectangular shape on Bitcoin’s technical chart represents the weekly resistance. In this zone, most people added up Bitcoin in May 2022 considering it an important support. The reason why Bitcoin is struggling in this zone is that some of those investors are probably offloading the assets they added almost a year ago.
The negative candle from Thursday also shows that more people are selling their tokens at breakeven. But the shrinking volume shows that whales are either holding their position or they’re gradually offloading the tokens they accumulated close to the bottom. The situation will become clear once the volumes start increasing.
Therefore, investors need to keep an eye on the volumes to determine the next direction of Bitcoin.
Bitcoin’s price remains uncertain as it struggles around the $30,000 mark. While Standard Chartered’s revised prediction offers hope for future growth, upcoming events and macroeconomic factors may introduce volatility. The impact of a spot Bitcoin ETF is uncertain, and indicators such as China’s Producer Price Index and technical analysis provide mixed signals.
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