Bitcoin (BTC), the market’s most popular cryptocurrency, has been trying to stabilise around $112,000, after a steep decline on Sunday to $110,000, which is a 10% fall from its all-time highest (ATH) level.
Market expert Dr. Profit discussed on X, formerly Twitter, the upcoming consequences and most significant technical indicators which paint a bleak image for Bitcoin (BTC), and the broader markets.
Fed Rate Cut To Trigger A New Market Correction?
Doctor Profit emphasized The current environment of the market is very different than previous cycles. He thinks that the Fed rate cut next month will cause a significant correction of both stocks as well as cryptocurrencies.
He believes that the first major cut usually brings about uncertainty and divergent views among investors. This time is no different.
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Looking at Bitcoin’s technical indicator, it appears that the future is bearish. Experts noted that there was a significant decrease in the price of Bitcoin. Chicago Mercantile Exchange There is a gap at the CME around $93,000 that must be filled, but the most liquid assets are concentrated from $90,000.00 to $95.000.
Charts indicate that a possible correction is underway, as indicated by the double-top formation and a declining volume of trading. Notably, Dr. Profit asserted the recent price spike that brought BTC to $124,000 was driven largely by the futures market rather than the spot markets, which reinforced the bearish sentiment.
Bitcoin Price Prediction
This analysis is heavily influenced by market psychology. Retail investors are often influenced by sentiment and on-chain metrics.
Experts revealed that institutional investors were the ones who benefited from Bitcoin’s recent dip in price, which took place between May and July of this year. Retail buyers, however, missed out.
Doctor Profit noted that retail investors were entering the market as the prices climbed. This could result in a shaking of the Bitcoin markets, especially when the price reaches the critical threshold. liquidation zone From $90,000 up to $95,000
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Doctor Profit cautions that, beyond Bitcoin’s current price, the market is currently displaying a false optimistic sentiment, suggesting the widespread belief in an altcoin season that will last for a long time, may be misguided. He warns investors that as excitement grows, bigger players might begin to unload their positions and leave retail investors at risk.
Looking ahead, he forecasts a potential surge in Bitcoin prices towards $145,000 to $150,000, which could potentially mean a 34% increase from current levels. He also anticipates Ethereum The price of ETH will rise to between $7,500 and $8,000.
Bitcoin currently trades for $112,560. The price has dropped 6% over the last 14-days. Ethereum, on the other side of the coin has consistently ranked among the top performers in the market with a growth rate of 5% during this time period.
Chart from TradingView.com, image from DALLE
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Source: www.newsbtc.com
