Bitcoin’s price has persistently dipped below the daily 50 Moving Average (MA) for the first time since September 2023, signaling potential near-term reversals. The short-term bearish trend is supported by a potential weekly double-top and declining divergence on the weekly Relative Strength Index (RSI).Moreover, scrutiny of Bitcoin miners’ on-chain activities reveals heightened selling pressure, counteracting buying interest from institutional investors. Amidst this, the anticipated bull market for altcoins is anticipated in the upcoming months, fostering a balanced crypto cash rotation.
Bitcoin’s Price Potential
Renowned crypto analyst PlanB, creator of Bitcoin’s stock-to-flow model, suggests that the macro bear market has concluded, marking the start of the accumulation phase. Anticipating a bullish cycle, PlanB envisions Bitcoin’s price ranging between $100k and $1 million.
Despite expectations of consolidation within a horizontal range, PlanB and Crypto Capo from the X platform both foresee Bitcoin staying above $32k in the upcoming weeks, despite increased speculation about a market correction.
An Unexpected Turn of Events
Investors now find increased reasons to prioritize Bitcoin as an asset class. The recent approval of 11 spot Bitcoin ETFs in the United States anticipates a surge in cash inflow in the coming years.
Furthermore, with Bitcoin’s fourth halving event less than 100 days away, its annual inflation is set to decrease to less than 1 percent. Meanwhile, the US Federal Reserve has signaled multiple interest rate cuts this year in response to easing inflation without significant unemployment concerns.
