Bitcoin price has recovered slightly from the blood bath that happened on Monday after global markets plunged due to economic uncertainties. At the press time, the BTC to AUD conversion shows that the OG-crypto currency is trading at A$87,197.40, up 1.3% as compared to same time last day.
However, investors are still concerned about the future price of Bitcoin given the lack of bullish cues and the formation of a death cross the the token’s chart. Despite this, the 24 hour trading volume of BTC stands at
Bitcoin price rebounds from lows
This comeback comes after a precipitous drop in Bitcoin prices that made many investors lose faith in the virtual currency. Although there appears to be more activity and interest in the market given the spike in volume that accompanies this price increase, investors are still going for a cautioned trading. One important factor influencing this recovery is the general state of the market.
The Nikkei’s 7% opening increase signaled a strong shift in investor mood. The Nikkei increase could be a sign of a change in the views of institutional investors, who are major participants in the bitcoin market.
If institutions begin to regain trust, it is likely that more pronounced and sustained buying pressure on Bitcoin will take place, which would drive prices higher. In spite of the encouraging signs, it is crucial to consider the potential for a bull trap.
In many cases, there is a brief price increase that gives investors a false sense of security before the price drops abruptly again. A dead cat bounce, which is comparable to this, is a momentary correction in the price of a declining asset, after which the trend resumes its downward trajectory.
The current volatility in the price of Bitcoin is extremely evident, especially considering the inherent risks and unpredictability of the cryptocurrency market.
Bitcoin price recovers after key players show support
Apart from the recovery in the broader financial market, another reason for Bitcoin upward movement the unfazed support from major industry players in tough times.
The greatest names in the market, such as Michael Saylor, Samson Mow, and Matt Hougan, remained confident despite the widespread cryptocurrency sell-off.
Posting on platform X, they expressed their views about BTC price with Matt Hougan saying that a sell-off will only boost Bitcoin values in the long run. He went on to add that during general panics, people would press the sell button on liquid assets. But in his view, the sell-off events are only a small portion of Bitcoin’s larger picture.
Samson Mow maintained his positive outlook by forecasting that Bitcoin will reach $1 million by the next year. In contrast, Michael Saylor had a “Hold” placed on his X account, suggesting that he intended to cling onto his portion of Bitcoins in spite of his state of panic.
Has Bitcoin price reached a death cross?
Apart from all the merry trading at present, many investors are worried about the formation of a death cross on Bitcoin’s chart. Certain indicators have a tendency to lag and have little predictive ability, yet they are frequently the subject of media attention in both traditional and cryptocurrency markets, which can cause unwarranted anxiety in novice investors.
One such instance is the death cross of Bitcoin, which, in spite of its dismal track record of correctly forecasting future price patterns, frequently provokes increased anxiety and rash responses on social media. Prepare accordingly, since one appears to be approaching.
When the market price of an asset drops below its 200-day simple moving average (SMA), a death cross happens. The 50-day SMA for Bitcoin prices is currently declining to $62,332, suggesting a possible crossover with the 200-day SMA, which is currently at $61,605.
The presence of a death cross on the trading chart usually signals a potential decline in prices in future. When it comes to trading Bitcoin, investors have historically only employed the death cross analysis to exercise caution as opposed to liquidating their holdings.
Bitcoin price prediction: Will it hit $1 million in 2025
Crypto market participants are usually highly optimistic about the prices of their favorite cryptocurrency. Bitcoin is no exception to this. The usual $1 million prediction for the biggest cryptocurrency by market cap is still far from reality however.
In a short term period, Bitcoin’s price is expected to have increased by 41.19% to $79,406 if the current bullish movement continues. However, data shows that the mood for BTC is currently bearish, and the Fear & Greed Index is at 17 (Extreme Fear). As of right now, the price of bitcoin is predicted to range from $56,802 to $173,891 by 2025. If Bitcoin hits the highest price objective, its value might increase by 205.71% from its current price by 2025.
For this bullish movement to happen, the second half of 2024 will have to be see extensive rise in the Bitcoin price. However, looming economic worries and a delay in interest rate cut from the US Fed is making it a little difficult for Bitcoin to pick the sky rocketing pace that the market is expecting.
