Investors had developed high hopes when Bitcoin’s price reversed sharply after a year-long decline. Most investors were expecting a new all-time high following several updates. But Bitcoin disappointed everyone with its tight consolidation phase after hitting the $31,000 level. Bitcoin is struggling in a range for more than 10 weeks and most investors have again become doubtful about whether it will ever hit a new all-time high or not.
The following Bitcoin news may provide a better understanding of how Bitcoin’s price may perform over the coming days.
The Effect of U.S Debt Default Ceiling
Most analysts were predicting a price drop in Bitcoin due to the tight consolidation. But the price pumped on the weekend leaving most of the people surprised. Throughout the week, investors were concerned about the U.S. debt default. However, the investor’s confidence was boosted when President Joe Biden and House Speaker Kevin McCarthy were nearing a finalized deal on America’s debt ceiling.
The price of leading cryptocurrencies including Bitcoin and Ethereum increased significantly. On the contrary, Solana and Cardano outperformed other altcoins with their remarkable performance. The situation could’ve become quite alarming for the entire economy if the debt ceiling was not raised.
The performance of the Crypto market and Asian markets shows that investors are confident about the deal’s approval. And once the deal is finalized, the price of these assets may increase even further.
Bitcoin Price Prediction by JPMorgan
JPMorgan’s analysts have shared an update saying that Bitcoin could reach $45,000 if it starts following the price performance and investment structure of gold. Bitcoin’s bullish momentum began at the beginning of the year and reached $31,000 providing a return of 60%. Analysts have claimed that Bitcoin could increase by another 75% if it obtains acceptance levels similar to gold.
According to recent data, the investors are holding around $3 trillion worth of gold. So, Bitcoin could reach a price of $45,000 if it managed to mirror this. The analysts also mentioned that the 2024 halving event may also positively affect Bitcoin’s price because the halving events have made a positive impact in the past.
FATF Did Not Require Pakistan to Ban Crypto
The last week’s Bitcoin Weekly news highlighted that Pakistan (A South Asian Country) was planning to ban cryptocurrencies to adhere to the terms and conditions of FATF. But FATF has denied this claim saying that the institute hasn’t set any such requirement for the country to stay off its gray list.
FATF’s gray list is designed for the countries that fail to control money laundering and terror financing activities. Pakistan is currently struggling with a serious political crisis due to which the country’s economic condition is also affected. So, it’s quite possible that the economic team is trying to prevent outflow of the money.
However, FATF has clarified that the watchdog hasn’t asked the country to ban cryptocurrency to stay out of the gray list.
Russia Dropped the Plans for a National Crypto Exchange
The Russian government was planning to launch a national exchange following the international sanctions. But they’ve now canceled the plan and are now looking to regulate multiple crypto trading platforms. The idea of a national crypto exchange wasn’t appreciated by the Finance Ministry and other authorities.
The step towards regulating multiple crypto trading platforms will help local businesses with processing cross-border transactions. The country will also create new crypto platforms to avoid certain restrictions. The operations of crypto exchanges will be monitored by the Russian central bank.
The cryptocurrency exchanges will be asked to implement a different model for Russian business where they will facilitate exporters and importers to transfer funds to each other. The establishment of a regulatory framework is widely supported by major Russian crypto companies. The regulatory authorities will determine the qualification of the investors based on the criteria.
Bitcoin Weekly Update by Pseudonymous Strategist PlanB
A pseudonymous crypto Strategist, PlanB, recently shared an update with his 1.8 million Twitter followers saying that Bitcoin is about to cross a resistance zone that has historically marked the beginning of a bull run. The historic data shows that Bitcoin’s price remains above its realized prices during the bull markets.
And its two-year realized price is around $29,500. So, the analyst says that a close above this level may signal the start of a bull market. However, the analyst is patiently waiting for the resistance to break.
Bitcoin Weekly Technical Analysis
After hitting the $31,000 level, Bitcoin is consistently struggling to set its direction. The price is currently moving in a parallel channel where it makes a new low after hitting the upper resistance level of the channel. However, it’s the first time that the price made a strong bullish candle before hitting the upper resistance level.
So, the price may potentially break out of this channel after some retracement. But it’s important to wait for the pattern to complete because the price may even drop below $15,000 if it broke below this parallel channel.
Bitcoin’s recent price consolidation has created doubt about its potential for a new all-time high. However, factors such as the resolution of the U.S. debt default, JPMorgan’s price prediction, regulatory developments, and positive technical indicators offer optimism for Bitcoin’s future. While uncertainties persist, the outlook for Bitcoin’s price trajectory holds promise.
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