Crypto analyst predicts 20% drop in Bitcoin in the coming weeks.

Crypto analyst predicts 20% drop in Bitcoin in the coming weeks.

The Resilience of Bitcoin in the Face of Rate Hikes

Bitcoin (BTC) has shown remarkable resilience in recent days, particularly in response to the US Federal Reserve’s announcement of a 25 basis points hike in the Federal Funds Rate (FFR) on Wednesday. Despite the rate hike, BTC has seen a 0.78% increase in the last 24 hours, with other cryptocurrencies also experiencing notable gains. However, a crypto analyst has predicted a significant bearish trend for BTC in the coming weeks.

According to an analyst with the Twitter handle @CryptoFaibik, BTC is likely to experience a 15-20% plummet in value in the near future. However, before this potential dip, Bitcoin is expected to hit the $32,000 mark, representing an 8.6% gain from its current market price. The analyst outlines this projection without providing specific reasons to support the bearish outlook.

While this prediction of a potential decline in BTC’s value is interesting, it is important to note that there have been positive sentiments surrounding Bitcoin in recent weeks. Despite the Fed rate hike, Bitcoin has demonstrated its resilience and has been performing well. Additionally, there is increasing institutional demand for Bitcoin, as prominent asset managers have filed applications with the United States Securities and Exchange Commission (SEC) to launch the first Spot Bitcoin ETF in the United States.

On July 20, Bitcoin research firm NYDIG reported that the approval of these ETF applications could result in $30 billion in new demand for Bitcoin. This prediction takes into account factors such as the brand recognition offered by asset managers like BlackRock, as well as the familiarity of regular trading methods among securities brokers.

To further understand the potential future price movement, let’s take a look at the daily chart for Bitcoin. As seen on the chart, BTC is currently trading at $29,480. It is important to note that charts are a valuable tool for technical analysis and can help investors identify patterns and potential price movements. However, they should be used in conjunction with other indicators and not solely relied upon for predictions.

BTC Trading At $29480 On The Daily Chart

Bitcoin’s Increasing Social Dominance

In addition to its resilience in the face of rate hikes, Bitcoin’s social dominance has also seen a significant boost. According to data from on-chain analytics company Santiment, Bitcoin now accounts for one-third of all discussions surrounding the top 100 crypto assets. Its social dominance currently stands at 33.33%, the highest it has been in the last two weeks.

Increased social dominance often indicates fear among investors, which can be a precursor to a price rise. This suggests that Bitcoin may be on the verge of experiencing further gains. At the time of writing, Bitcoin is trading at $29,406.94, with a slight decline of 0.16% in the last hour. Its daily trading volume has surged by 20.46%, reaching $12.97 billion. With a market cap of $571.05 billion, Bitcoin continues to hold its position as the largest cryptocurrency in the market.

In conclusion, while there are predictions of a potential bearish trend for Bitcoin, recent resilience in the face of the US Federal Reserve’s rate hike and increasing institutional demand provide positive indicators for the cryptocurrency. Furthermore, Bitcoin’s growing social dominance suggests that investor sentiment may result in further price appreciation. However, as with any investment, it is important to consider various factors and not solely rely on one prediction or indicator. By staying informed and understanding the market, investors can make more informed decisions regarding their cryptocurrency holdings.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!


Was this article helpful?

93 out of 132 found this helpful

Discover more