K33 Research Foresees Possible Bitcoin Bottom Amid Current Market Conditions
Summary
K33 Research indicates that Bitcoin may reach a bottom due to ongoing negative funding rates, with bullish potential contingent on macroeconomic factors like rate cuts and CPI data. Predictions suggest Bitcoin could rise to $100,000 or potentially $150,000 by year-end, influenced by multiple market dynamics and historical patterns. Current trading metrics show a decline in value, but short-term forecasts remain optimistic for recovery.
K33 Research has analyzed the current trends surrounding Bitcoin ($BTC) and suggests that there is a realistic possibility for the cryptocurrency to reach a bottom value, particularly in light of the continuing negative perpetual funding rates. Analysts from K33 have noted that the average returns following a 30-day average funding rate may turn negative, which could contribute to a bullish outlook for the end of this year. However, it is important to acknowledge that these bullish sentiments are largely influenced by broader macroeconomic factors, including anticipated rate cuts and employment data. A Consumer Price Index (CPI) report is slated for release on Wednesday, which will likely influence future price movements and announcements. Currently, a reduction of 25 basis points is anticipated, but there is a call within the community for a more pronounced decrease of 50 basis points. Before Bitcoin is positioned to achieve a new all-time high (ATH), it is expected that the asset will first experience a bottom or a temporary decline in value. The market has exhibited signs of de-risking, a trend also evident in the Nasdaq and S&P 500, due to negative returns recorded in early September. Notably, Bitcoin and the S&P 500 have reported a correlation that has reached a 23-month high with a factor of 0.67. The Federal Reserve is poised to announce rate cuts on September 18, which is projected to prompt investor actions aimed at optimizing their involvement within this ecosystem. Optimism remains around Bitcoin’s market outlook, with predictions suggesting that the token could reach a price of $100,000 by the year’s end, while some estimates point toward $150,000, contingent upon various market dynamics and investor sentiments. Historically, achieving market bottoms has correlated with a dip in the monthly funding rate. Data from K33 indicates that average 90-day returns have reached 79%, with a median return of 55%. This prediction is informed by several factors, including the Federal Reserve’s pivot, impending U.S. elections, effects of the delayed halving, and FTX repayments, suggesting that the market may witness a significant surge based on multiple concurrent influences, a sentiment frequently discussed among cryptocurrency enthusiasts. As of the current assessment, the price of Bitcoin stands at $56,796.85, representing a decrease of 0.68% over the last 24 hours. Nonetheless, it reflects a 0.43% increase over the past week, juxtaposed against a notable decline of 4.99% over the previous 30 days. Short-term forecasts for Bitcoin remain robust, with expectations suggesting a potential rise to $67,612 over the next five days, and a projected trading range of $79,973 in the subsequent 30 days, indicating a potential increase of 41.55% based on present valuations. Currently, with a Fear and Greed Index (FGI) score of 37 points, the volatility metrics indicate stability just above 4%. Bitcoin appears undervalued at this juncture, with indications of an upcoming rebound. Supporting this analysis are the 50-day Simple Moving Average (SMA) set at $60,519 and the 200-day SMA at $61,888. The prior cycle closure price for Bitcoin was noted at $67,576 during April-May 2024, leading to speculation that the ongoing downswing could signify an impending correction phase about to conclude.
The cryptocurrency market, specifically Bitcoin, has recently faced challenges characterized by negative funding rates and fluctuations in value. Analysts at K33 Research are closely monitoring these market dynamics, which influence investor sentiments and trading activities. The anticipation of macroeconomic changes, particularly Federal Reserve rate adjustments and employment statistics, plays a significant role in shaping market outlooks for Bitcoin. Historical patterns indicate that market bottoms often align with declines in funding rates, and with upcoming economic reports, the market is watching closely for signals of recovery or further downturn.
In summary, K33 Research proposes that Bitcoin may soon hit a bottom due to persistent negative funding rates, which could pave the way for a bullish reversal influenced by upcoming macroeconomic events, including anticipated rate cuts. The correlation with broader market trends, particularly in equity indices, reinforces the idea that Bitcoin’s potential recovery hinges on numerous interconnected factors. Despite a current value decline, positive short-term forecasts suggest that Bitcoin could rebound significantly in the coming weeks, contingent upon the overall market environment and macroeconomic policies.
Original Source: www.cryptonewsz.com
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