The Bitcoin price has surged significantly since the US Federal Reserve’s 50 basis points (bps) interest rate cut. However, there are projections that the flagship’s price rally may be shortlived and a price crash imminent. Crypto analyst CrediBULL Crypto has predicted that the BTC price could drop to as low as $49,000 soon enough.
The Bitcoin Price Might Crash Again
CrediBULL Crypto recently shared insights on X, forecasting a potential drop in Bitcoin (BTC) below $49,000 in the near future. His analysis suggests that the leading cryptocurrency may first rise to a local peak of $70,000 before experiencing a significant correction. According to CrediBULL, this downward movement is expected to flush BTC “ideally under” the $49,000 mark, setting the stage for a subsequent breakout.
This prediction reflects CrediBULL’s technical analysis, which indicates that the market could be ripe for volatility. A rise to $70,000 would mark a significant recovery for Bitcoin, attracting more investors and traders into the market. However, the anticipated drop below $49,000 could serve as a crucial point for accumulation, allowing savvy investors to position themselves ahead of a potential bullish trend.
Market participants should closely monitor these price levels, as they could signal opportunities for trading and investment. As always, cryptocurrency markets are unpredictable, and careful analysis is essential for navigating these fluctuations. CrediBULL’s insights highlight the importance of being prepared for both upward and downward movements in the ever-evolving crypto landscape.
According to Coingape, a potential cut in US Federal Reserve interest rates could ignite a Bitcoin price rally, propelling it toward the $70,000 mark. However, analysts caution that a significant price crash could follow soon after, aligning with warnings from CrediBULL Crypto. Analyst Ali Martinez has also indicated that Bitcoin may face impending downward pressure.
Martinez noted that nearly $2 billion in Bitcoin futures contracts have been opened within the past three days. This surge in activity raises concerns about a possible long squeeze, which could exacerbate volatility in the market. A long squeeze occurs when a significant number of traders holding long positions are forced to sell as the price declines, further pushing the asset down.
CrediBULL has pointed to the emergence of what he calls the “Binance spot plunge production team,” suggesting that forces are at work aiming to drive Bitcoin’s price down. This sentiment reflects growing apprehension in the market about potential manipulations that could lead to a sharp decline in Bitcoin’s value.
As Bitcoin navigates this complex landscape, investors are urged to stay vigilant. With the possibility of both a price rally and subsequent crash, it is crucial for traders to monitor market indicators closely and adjust their strategies accordingly. The current conditions emphasize the need for careful analysis in a market that remains highly unpredictable.
Why A Price Crash Might Not Happen
Crypto analyst Bonk Guy has outlined why a Bitcoin price crash might not happen. He mentioned that the market is just weeks away from the fourth quarter of this year, which is seasonally the most bullish for risk assets.
Specifically, Bitcoin enjoys the most returns in Q4 of each year. Moreover, the flagship crypto has enjoyed positive monthly returns in October, November, and December of the last two halving years.
The analyst further mentioned that the US presidential election is 45 days away. Historically, Bitcoin price enjoyed surge after past elections since the aftermath brings market certainty. There are projections that the BTC price could reach $90,000 if Donald Trump wins.
Despite the crypto community favoring a Trump presidency, history shows that the flagship crypto could still rise no matter who wins. Moreover, Anthony Scaramucci revealed that he is helping Kamala Harris develop crypto policies, which is a positive for bitcoin price.
Meanwhile, BONK Guy mentioned that FTX customers are set to receive $16 billion in cash as their repayments following FTX’s collapse. This is bullish for the Bitcoin price since these users could allocate some money to the flagship crypto. These users receiving their repayments in cash also means that BTC won’t suffer any selling pressure from these customers like it did following the Mt. Gox repayments.
The post-halving rally is also around the corner. Historically, this rally begins between 150 to 170 days after the halving event. It has been over 150 days since the halving event on April 19. Therefore, this provides a bullish outlook for the flagship crypto and indicates that the projected price crash might not happen.
At the time of writing, Bitcoin price is trading at around $63,000, down in the last 24 hours. Trading volume has also dropped during this period, with $26.46 billion traded.
