Crypto analysts have predicted a massive breakout for Bitcoin (BTC) in the near future. It appears that the dark clouds of bearish trends have faded away, and a bright future is in the cards for the biggest cryptocurrency in terms of market capitalization. Bitcoin’s current price movements are also hinting at this potential bull run.
Selling pressure from concerns over token distributions by defunct crypto exchange Mt Gox also appeared to have cleared, while data on Monday showed crypto investment products saw some positive capital flows over the past week.
Further highlighting the lack of momentum in the market is the lack of convergence of the 50-day and 200-day moving averages, which normally points to possible bullish or bearish trends. Recent on-chain data highlights the lack of significant whale activity, which further implies that big investors are not interested in the asset right now, which…
Uncertainty over the U.S. presidential election also factored into caution towards crypto, as Kamala Harris and Donald Trump were seen polling neck-and-neck in the 2024 race. So far, only Trump has presented a pro-crypto stance.
But despite this week’s rebound, Bitcoin still remained close to a trading range seen for most of this year, as it struggled to make new highs after a rally in March. The token has also largely lagged a rally in stock markets in recent sessions.
Bitcoin has become a focal point of the US presidential campaign. Following the shift in Polymarket odds and polling in Harris’s favor, the original cryptocurrency has been trading in a range, recently touching $61,000 before dropping back to around $58,000.
Bitcoin price jumped higher on Friday, tracking a surge in broader risk-driven markets as positive U.S. labor market helped soothe some concerns that a recession was imminent, with altcoin prices also rallying.
Bitcoin and broader cryptocurrency prices moved in a flat-to-low range, and were sitting on steep losses this week as concerns over slowing U.S. economic growth and rising Japanese interest rates battered risk-driven markets.
H.C. Wainwright attributes the sell-off in the crypto and equity markets to three primary factors: the fears of a hard landing for the U.S. economy after weak data, the unwinding of a popular global carry trade following the Bank of Japan’s rate hike, and escalating geopolitical tensions in the Middle East.
Bitcoin’s price dipped below $50,000 for the first time since February, reaching a low of $49,351 before making a recovery to around $51,000. As a result, the original coin’s dominance rose to 58% as both the altcoin and stock markets collapsed, wiping out over 17% of the total cryptocurrency market capitalization.
