Bitcoin edges closer to an all-time high, 7% away, with market analysts predicting past trends to play out.
The recent update by Benjamin Cowen indicates that Bitcoin could replicate the previous patterns. The note conveyed by Into The Cryptoverse warns that bearish trends could likely dominate the scene.
Cowen acknowledges that monetary policy shifts harbours immense influence. Notably, the analyst cites the historical behavior of BTC post-rate cuts.
Implications for Bitcoin Dominance and Rate Cut
Cowen notes the previous cycle that coincided with rate cuts occurred in mid-2019. Such triggered sizeable changes in BTC dominance and uptrend price momentum.
Analysts indicate that Bitcoin’s dominance has peaked after the interest rate cuts. Nevertheless, the peak has not aligned with the price rally, unlike when BTC tumbled to lower levels.
Cowen considers the emergence of this correction dragged BTC down to the 100-week Simple Moving Average (SMA). The analyst believes that the latest rate cuts replicate these conditions. In particular, Bitcoin’s price now approaches over 60% dominance, although Bitcoin has witnessed lower highs. Such similarity prompts questions on whether the market will have a similar trajectory.
Expert Predict Bitcoin Pullback Looming
Cowen argues that BTC will first retest the 60% dominance peak on the lower high before stumbling towards 100 SMA before the onset of December. Nonetheless, Cowen admits that the view is subject to change, mainly if BTC breaks the lower-high structure this month.
Top 5 Cryptocurrencies Today:
| Name | Price | 24H (%) |
|---|---|---|
Bitcoin
(BTC)
| $29,078.00
| -3.19% |
Ethereum
(ETH)
| $1,948.11
| -4.71% |
Tether
(USDT)
| $1.00
| -0.03% |
BNB
(BNB)
| $295.60
| -1.51% |
Cardano
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| $0.51
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Per Cowen’s argument, a major BTC rally that will leave other altcoins trailing can yet emerge despite such missing on the radar of most market participants.
A glance at the past performances of BTC coinciding with monetary expansion spells often fuels interest in the ongoing trajectory.
A recent Ecoinometrics publication reveals that Bitcoin outperforms traditional assets amid liquidity inflow, similar to the COVID-19 pandemic spell.
A flashback to 2020 reveals central banks channeled trillions into the economy. Conspicuously, Bitcoin’s growth rate dwarfed that of major indices, including NASDAQ and gold.
Is the Current Situation Sustainable?
The prevailing economic conditions contrast the monetary expansion witnessed during the COVID-19 pandemic spell in 2020.
The signs of a liquidity surge are on the horizon. Such is yet to match the pandemic period since governments have downsized their money-printing activities, thus brewing a period of relative stability for Bitcoin.
Market experts warn of looming fiscal challenges, particularly debt levels and skyrocketing debt levels that point towards momentary easing by central banks.
Such an occurrence could lift Bitcoin to experience a significant price rally that outpaces conventional assets, as witnessed during the COVID-19 pandemic.
Bitcoin Flashing Green as Bullish Signals Emerge
Market analysts are bullish on Bitcoin sustaining uptrends following the day’s high at $68,455.82. Bitcoin experienced mild price movement, hovering within the $68K level.
The present position is bullish amid concerns about its capability to surpass $70,000 or encounter resistance and retracement, as witnessed consistently this year.
In a Friday update on X, analyst Jelle reflects on Bitcoin’s weekly timeframe, suggesting a bullish signal for imminent gains. Particularly, Jelle observed that Bitcoin’s weekly MACD edges closer to cross bullish again, as witnessed last October, as it peaked past $73K by March.
Jelle’s chart portrays the BTC weekly MACD set for reset as it mirrors Q4 2023, which marked the start of the present bull market.
While Bitcoin has portrayed a bearish trend since the March peak, Jelle suggests it appears primed for an upward move. Crypto analyst TheoTrader echoes this prediction, indicating that the monthly trend has shaped up to an undeniably bullish outcome.
TheoTrader considers Bitcoin now heading towards setting new highs. The analyst downplays the warning alarm by Tender Market Research’s view that BTC is past, setting a new peak.
Meanwhile, Tender urges caution since the MACD indicators lag, suggesting trends end. Tender notes that Bitcoin would have realized the new highs during the sizeable rate cust in September. He urges caution since BTC is losing the steam needed for a bullish price.
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