Bitcoin Price Forecast: Potential Retracement to $63,000 Before New All-Time Highs

Cryptonews Omar El-Sharif October 19, 2024

Bitcoin Price Forecast: Potential Retracement to $63,000 Before New All-Time Highs

Analysts predict Bitcoin may retrace to $63,000, partly due to recent leveraged buying patterns and rising open interest levels. Despite these bearish forecasts, there remains a bullish sentiment with expectations of possible new all-time highs before the upcoming US elections.

In recent analyses, experts have suggested that Bitcoin may experience a price retracement to approximately $63,000 before potentially achieving a new all-time high (ATH). Analyst Justin Bennett expressed that he would not be surprised to see Bitcoin eliminate last week’s leveraged buyers, particularly following the recent rally that saw the cryptocurrency reach a high of around $69,000, marking its peak since late July. Bennett noted in a recent X post that Bitcoin’s price could drop to around $63,276, as he identified a developing rising wedge alongside bearish divergence patterns. Furthermore, Bennett highlighted that the recent rally was predominantly fueled by the perpetual futures market, which he indicated is not conducive for sustaining a breakout, especially considering the open interest (OI) levels nearing the highs observed in late July. This concern was echoed by fellow analyst CrediBULL Crypto, who cautioned about the increase in open interest, signaling that a price correction may soon be imminent. CrediBULL Crypto pointed out that OI has officially surpassed the levels seen before Bitcoin’s last decline from $70,000 to $49,000. He speculated that Bitcoin could drop to around $50,000 before surpassing its current ATH of $73,000. Contrary to these bearish sentiments, some analysts convey a bullish outlook for Bitcoin. Bitwise’s Chief Investment Officer, Matt Hougan, predicted that Bitcoin could reach a new all-time high before the upcoming US elections, while Standard Chartered foresees Bitcoin surpassing $73,000 prior to the November 5 presidential elections. Crypto analyst CryptoCon expressed confidence in the forthcoming Bitcoin bull run, suggesting that it is about to gain momentum. He asserted that the price is unlikely to fall as low as $40,000 again, as some may speculate, and indicated that the current trajectory suggests significant price movements across the crypto market. Additionally, he projected that Bitcoin’s price could reach as high as $120,000 within the next year, citing confirmations from the Price Oscillator that indicate all local highs of the mid-cycle have been completed. Real Vision’s Chief Crypto Analyst, Jamie Coutts, provides further optimism, predicting Bitcoin’s potential to reach $110,000 between April and July 2025, attributing the expected surge to a rise in the global money supply. Similarly, Hougan reinforced the expectation of a six-figure Bitcoin price, citing various factors including the US elections, Spot Bitcoin ETFs, anticipated rate cuts, and increasing demand within the marketplace.

The predictions surrounding Bitcoin’s price movements are shaped by a complex interplay of market dynamics, leveraging behaviors, and macroeconomic factors. Recent weeks have seen Bitcoin rise to notable highs, prompting analysts to assess both bullish and bearish movements in anticipation of a potential new ATH. Understanding the driving forces behind these sentiments, particularly the behavior of leveraged buyers, open interest data, and market cycles, provides essential context for these forecasts. Furthermore, events such as upcoming elections and global monetary trends are also anticipated to influence Bitcoin’s trajectory significantly in the near future.

In summary, while there are contrasting opinions regarding Bitcoin’s imminent price action, many analysts converge on the idea that a retracement to $63,000 could be likely as leveraged positions are wiped out. However, the overall sentiment remains positive, with numerous indications hinting at a forthcoming bullish phase and the possibility of achieving new all-time highs. Factors such as heightened open interest and macroeconomic conditions will continue to play critical roles in determining Bitcoin’s performance as we approach significant financial events in the coming months.

Original Source: coingape.com