Bitcoin Predicted to Stabilize Within Key Price Range Until Late 2024, Analysts Report
The recent uptick in Bitcoin’s price, prompted by Federal Reserve Chairman Jerome Powell’s latest address, has become a focal point of discussion within the cryptocurrency community over the weekend. Analysts at QCP Capital have provided an analysis suggesting that Bitcoin will oscillate within the $61,000 to $70,000 range until the fourth quarter of 2024.
In their latest report, QCP Capital highlighted that the recent price surge of Bitcoin can be significantly attributed to increased spot demand, following the Fed’s indications of a potential interest rate reduction cycle, rather than through derivatives like futures. Remarkably, during this rally, the funding rates—indicative of the cost incurred when holding long positions in futures—remained stable. QCP anticipates that should Bitcoin maintain support around $62,000, an increase in leveraged long positions could be likely, particularly as the end of the summer holiday period approaches.
Additionally, the report notes a notable uptick in bullish options trading, especially surrounding strike prices of approximately $62,500 to $63,000, preceding Powell’s speech at the Jackson Hole economic symposium. The firm also observed a persistence in bullish sentiment toward long-term bets, with strikes between $80,000 and $85,000 for December and March.
Powell’s revelation that the Federal Reserve intends to implement interest rate cuts in the forthcoming month has been assessed by QCP analysts as potentially bullish for Bitcoin. A modest 25 basis point reduction is viewed favorably as an indication of the Fed’s cautious economic stance, while a more significant 50 basis point cut may suggest a more aggressive response aimed at averting economic stagnation.
As selling pressures dissipate and consistent capital flows into spot exchange-traded funds (ETFs) over the last fortnight, the analysts at QCP remain steadfast in their belief that Bitcoin will see continued consolidation between the $61,000 and $70,000 range until at least Q4 of 2024. They suggest that the U.S. elections, coupled with seasonal bullish trends, could serve as catalysts driving Bitcoin to new all-time highs.
Currently, Bitcoin’s price is positioned around $64,250, reflecting a modest 0.5% increase within the past twenty-four hours and demonstrating an overall rise of more than 8% over the past week, according to CoinGecko data.
In conclusion, the current market dynamics suggest a stable range for Bitcoin over the upcoming months, with the prospect of significant catalysts later in 2024. Investors are encouraged to conduct thorough research and remain vigilant in this rapidly evolving market. As always, investing in cryptocurrencies involves inherent risks, and individuals should carefully assess their financial situations before making investment decisions.
Disclaimer: The information provided is for educational purposes only and should not be construed as investment advice. Please consult financial professionals before making any investments.
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