Bitcoin price could fall below $15,000
After the US Federal Reverse raised interest rates by another 75 basis points and warned of a further increase in a future meeting, the crypto market took a big turn last week with an initial rally above the market before falling back down.
Bitcoin found itself at a three-month low of $18,000 before bouncing back to $19,000 at the start of the week, according to CoinMarketCap’s record.
While this week the market has succumbed to a degree of calm, the forecast for the price of Bitcoin remains unclear. The crypto market is flooded with mixed opinions. Several crypto analysts warned that Bitcoin may be poised to decline further.
A falling Bitcoin price
Tone Vays, the crypto analyst and former JP Morgan CEO, said in the latest strategy session that it could be possible that the world’s top cryptocurrency will soon enter a capitulation phase in the next two weeks.
In other words, Vays expected a dramatic increase in selling pressure in the market dominated by the bears. Explaining his call, the analyst pointed to Bitcoin’s four-day chart and suggested maintaining short positions.
Vays predicted that Bitcoin could plunge even further to a low of $15,000. On the other hand, the imminent capitulation of Bitcoin is likely to present a silver lining to a bull run.
To know,
“I think we’re going to go to a second MR buy in a row and then all the stars and the moon will align… We already have a monthly MR buy on Bitcoin. We will have a monthly MR buy next month in the stock market… The weekly MR buy isn’t coming for three weeks so that’s also going to be true. So sometime in early October we should align with everything… If we crash down to $14,000, $15,000 in Bitcoin, everything will line up with the MR for the perfect buying opportunity.”
Bitcoin is trading in the $19,000 price range at press time, but contrary to Vays’ forecast, many investors are hoping for a minor recovery for Bitcoin. Given the outlook of Bitcoin, the next target is expected to be the $20,000 mark.
A wild market
Volatility remains in place and Bitcoin is struggling to break out of the bear market. After yet another interest rate hike, which actually met investors’ expectations, Bitcoin, SNP, NASDAQ and Dow Jones triggered a big weekly drop, throwing traders and investors off guard.
The key factor contributing to the red wave is the Fed’s 2023 plan, which outlined all the rate hikes projected by the FOMC. After Fed meetings, further interest rate increases are likely to peak between 4.25% and 5% next year.
However, these numbers beat expectations of 4% to 4.75% before they met. Furthermore, the majority of the committee’s members expect that interest rate increases will be skewed towards the upper half in 2023, another major deviation from the market’s expectations.
There is a proven correlation between tech stocks and the value of Bitcoin. As tech stocks have fallen drastically, Bitcoin will suffer from devaluation, crypto analyst Nicholas Merten said in a new video.
Intense pressure from the continuous increase pushed Bitcoin below $20,000, Jan Happel and Yann Allemann stated in Glassnode’s latest newsletter.
The co-founders of Glassnode said the Fed’s efforts to curb inflation are standing in the way of crypto growth. This factor, along with bearish momentum, results in more pain for Bitcoin.
Data from Santiment shows a decrease in the number of BTC in the whale balance for 10 months. This is evident that the fear of increased inflation and macro background is accelerating, causing investors holding 100 to 10,000 BTC to move part of their balance to safer assets.
Although we are probably closer to the bottom of the market than the top, it could take years to form a bottom. Bitcoin price remains high by historical standards.
