Key Highlights
- The price of Bitcoin (BTC) is currently above $109,000, reflecting a 1% increase over the past 24 hours.
- Analysts at Standard Chartered predict that BTC could dip below $100,000 before resuming its rally.
Bitcoin May Drop Below $100,000, Say Analysts from Standard Chartered
Bitcoin has experienced significant volatility this month, dropping to $102,000 just days after reaching an all-time high of $126,000. The price has struggled to recover following the liquidation event on October 10.
Geoffrey Kendrick, head of digital asset research at Standard Chartered, informed investors on Wednesday that Bitcoin might briefly fall below the $100,000 mark before the weekend. Kendrick emphasized that the predicted decline is unavoidable but expects it to be temporary. He noted, “The question is now how low Bitcoin might go before finding a bottom.”
Kendrick also suggested that this might be the last instance of Bitcoin falling below the $100,000 threshold. He explained that the historic peak recorded on October 6 aligned with short-term price targets, yet failed to climb higher due to increasing macroeconomic concerns stemming from renewed trade tensions between the U.S. and China.
Three factors have been identified by analysts that could potentially drive Bitcoin prices higher in the short term, starting with a significant sell-off in gold earlier this week which hinted at a fund rotation from precious metals toward riskier assets like cryptocurrencies.
The second factor involves monetary policy, with indications that the Federal Reserve may cut interest rates again, suggesting a further rally for Bitcoin. Kendrick maintains that despite current market conditions, Bitcoin could attain a price of $200,000.
BTC Aims for $114,000 as Market Conditions Improve
The four-hour chart for the BTC/USD pair remains bearish, even as Bitcoin has gained 1% in value over the past day. As of the latest update, BTC is trading around $109,650, but it may see a short-term uptick.
The RSI at 51 indicates that bulls are regaining market control, with MACD lines also positioned in positive territory.
If this recovery trend continues, BTC could approach the weekly high of $113,964 within hours. A prolonged bullish run could see it break the ILQ level at $116,000. However, should the bearish trend persist, Bitcoin may fall below the weekend low of $105,000.
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