Jannat Ara

Bitcoin’s Future: Bullish Predictions Amidst Market Fluctuations

Over the past weekend, Bitcoin (BTC) experienced a dip, sliding to the $41,000 range amidst a broader trend that saw the global crypto market cap dropping by over 8% within 24 hours, resting at $1.46 trillion. This slowdown links partly to a lack of fresh news on ETF applications, contributing to market uncertainty.

However, amid this downturn, optimism reigns supreme. Expectations are building for a potential rally, especially as the January ETF application window approaches. This buoyant sentiment is amplified by bullish forecasts from notable figures like VanEck’s CEO and Pantera Capital, hinting at a promising future for Bitcoin’s price.

VanEck CEO’s Bullish View & Pantera Capital’s Support

Jan van Eck, CEO of VanEck, anticipates Bitcoin to reach new all-time highs within the upcoming year. Comparing Bitcoin to gold, he sees it as a valuable asset amid the current economic landscape, citing Bitcoin’s resilience and an expected halving event in April as key factors driving his optimism.

Van Eck’s outlook ties Bitcoin’s growth closely to economic factors, especially the inverse relationship between interest rates and assets like Bitcoin and gold. As interest rates decrease, Bitcoin’s attractiveness as an investment escalates.

Similarly, Dan Morehead from Pantera Capital shares this positive outlook, linking Bitcoin’s evolution to maturity and predicting new peaks for Bitcoin in the coming year. Morehead extends this optimism, forecasting bullish trends for Bitcoin even into 2025.

These bullish predictions from industry leaders may bolster investor confidence in Bitcoin, potentially triggering an upward price movement as more investors recognize its potential for long-term growth.

Bitcoin Miners’ Record Earnings & Network Activity

Bitcoin miners recently achieved record earnings, hitting an all-time high of $9.98 million on December 16, surpassing the previous high set in May 2023. This surge aligns with Bitcoin’s rising price since early May and signifies a bullish trend.

A substantial revenue source for miners involves adding digital assets like “Bitcoin NFTs” or Ordinals to the blockchain. The increased popularity of trading Ordinals in November led to a spike in fees, surpassing $37.

However, the current congestion on the Bitcoin network, with over 200,000 pending transactions, has also increased transaction fees. While challenging, this congestion benefits miners who saw reduced earnings earlier this year. Miners are hopeful that this heightened network activity will persist, especially in anticipation of the Bitcoin Halving in April 2024.

Outflows and Shifting Sentiment Impact Bitcoin’s Position In recent developments, there’s been a notable shift in investor sentiment, breaking an 11-week inflow streak in significant asset managers such as CoinShares, Bitwise, Grayscale, ProShares, and 21Shares. CoinShares reported a net outflow of $16 million last week, primarily from Bitcoin-based funds, which experienced outflows of $32.8 million.

Moreover, short Bitcoin investment products faced minor outflows of $0.3 million. Despite these outflows, trading volumes remained robust, totaling $3.6 billion, above the yearly average of $1.6 billion. This surge in trading volume coincided with a 5% decrease in Bitcoin’s price, ending an eight-week streak of consecutive weekly gains. Bitcoin currently trades at $40,925.

The combination of significant outflows from Bitcoin-focused funds and a noticeable price drop reflects a shifting tide in investor attitudes. While trading activities remain active, these recent events have impacted Bitcoin’s market position, shaping its current valuation.

Bitcoin Price Forecast

As of December 18, Bitcoin stands at $41,560, showcasing a modest 0.50% uptick. The 4-hour chart analysis highlights pivotal points at $41,735 (pivot), with resistance at $42,818, $44,714, and $45,962. Conversely, support levels lie at $40,662, $39,720, and the critical $38,352 (aligning with a 78.6% Fibonacci retracement mark).

The Relative Strength Index (RSI) at 45 suggests a bearish sentiment leaning towards neutrality. Bitcoin’s position relative to the 50-Day Exponential Moving Average (EMA) at $42,000 is a significant threshold, signaling potential bullish or bearish trends depending on movement above or below this level.

Furthermore, the chart patterns indicate a 50% Fibonacci retracement at the $40,700 level, with potential further declines towards the 61.8% Fibonacci level at $39,785 and potentially to the 78.6% level at $38,350, establishing crucial support zones.

In summary, Bitcoin’s trend appears bullish above the $40,700 mark, hinting at potential tests of higher resistance levels. However, the market’s delicate balance suggests investors closely monitor these technical indicators for signals of either continued upward momentum or a shift towards a bearish trajectory.

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