Bitcoin Price May Briefly Dip Below $100k Soon, Standard Chartered Analyst Says
Bitcoin (BTC) price is facing a potential risk of dropping below $100,000 in the near future, according to Standard Chartered’s market analyst Geoff Kendrick. The analyst suggests that trade war concerns could contribute to a brief dip in the Bitcoin price below the $100k mark.
However, Kendrick also notes that any potential drop below $100k is likely to be short-lived. He sees this as a buying opportunity, especially if Bitcoin remains above the 50-week Moving Average (MA) level.
Standard Chartered has drawn parallels between the movements of Bitcoin and gold. Following two consecutive days of decline in gold prices, Bitcoin saw a brief rebound. This suggests that there may be a capital rotation from gold to Bitcoin, leading to a potential rally in the cryptocurrency.
If gold continues to exhibit weakness in the midterm, Bitcoin could experience a significant uptrend. The buying opportunity for Bitcoin will persist as long as the fear and greed index remains below 30, indicating a market sentiment of fear.
In addition to Standard Chartered’s analysis, Mike Novogratz, CEO of Galaxy, believes that Bitcoin is likely to hold above the $100k support level in the midterm. Novogratz suggests that a potential move by President Donald Trump on the Federal Reserve and anticipated rate cuts could trigger a rally in the Bitcoin price.
On the technical side, the Bitcoin MVRV Extreme Deviation Pricing Bands from Glassnode indicate that Bitcoin has lost a crucial support level above $120k. To avoid a potential drop to $97k or even $74.5k, Bitcoin must consistently rally above $120k.
In conclusion, while there are concerns about a possible drop in the Bitcoin price below $100k, analysts like Kendrick and Novogratz remain optimistic about the cryptocurrency’s long-term prospects. Investors should monitor market developments closely and conduct their own research before making any investment decisions.
