After an impressive eight-week rally that pushed Bitcoin (BTC) from $27,200 to over $44,000, the cryptocurrency is now facing a potential massive correction.
That's according to analyst Justin Bennett. The “Daily Price Action” host expressed concern about the current state of Bitcoin and emphasized the importance of staying above $43,300.
Meanwhile, rising network fees and debates over Bitcoin ordinals and BRC-20 tokens are adding to the complexity of the crypto landscape.
Bitcoin is on the verge of a correction
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A lower high could form and begin to stress trendline support. The next stop is at $38,000 with a sustained break.” He emphasizes that the dollar is strengthening above the support at 102 and points to possible risk-off scenarios if this trend continues.
As prices rise, so do network fees, sparking renewed debate about ordinals and BRC-20 tokens. Bitcoin Core developer Luke Dashjr wants to fix this problem by closing a loophole that allows blockchain spamming.
Dashjr's efforts have divided the crypto community, with some skeptical miners supporting the proposed changes. However, Dashjr remains steadfast and dismisses Bitcoin-based NFTs as a “scam.”
Bitcoin (BTC) is seeing increasing fees
Likewise, the Bitcoin mempool is currently struggling with severe congestion, with the number of unconfirmed transactions recently rising to over 249,000. The increase in ordinal inscriptions contributes to this congestion, as they account for over 50% of daily transactions on the network.
On-chain fees have increased, reaching an average of $27.55 per transaction on December 6th.
Glassnode senior analyst “Checkmate” highlights the discontent caused by inscriptions, which account for 50% of daily transactions but less than 10% of block data.
BTC price analysis and predictions
According to CoinGecko, the price of Bitcoin is currently at $41,700, down 5% in the last seven days.
Bitget Research has provided insights into macro and micro trends and predicted a promising outlook for BTC in 2024.
Chief analyst Ryan Lee expects possible appreciation of BTC and ORDI, with growth opportunities in the Bitcoin NFT market and the Lightning Network supporting wider payment acceptance.
Industry experts such as Mike Novogratz, founder of Galaxy Digital, and Ryan Lee of Bitget Research also offer different perspectives on the future of Bitcoin.
Novogratz suggests a BTC value of $70,000 if spot Bitcoin ETFs receive SEC approval, while Lee expects BTC to reach $100,000 in the next bull market.
Standard Chartered, a British multinational bank, predicts an uptrend for BTC and expects the cryptocurrency to reach $100,000 by the end of 2024.
Geoff Kendrick, head of digital assets research at Standard Chartered, highlighted this bullish outlook in an April 2023 analytical note.
Although Kendrick acknowledged the ongoing uncertainties, he emphasized the bank's belief that the path to $100,000 is becoming clearer.
Notably, in July 2023, Standard Chartered reiterated its optimism, doubling its forecast and hinting at a possible upward correction to $120,000 by the end of 2024.
The bank’s unwavering confidence in the flagship digital currency reflects a strategic perspective that goes beyond the so-called “crypto winter” and underscores a newfound optimism in the cryptocurrency space.
What's next
The crypto sector is eagerly awaiting whether US regulators will approve a physically backed Bitcoin ETF.
The US Securities and Exchange Commission has until January 10 to either accept or reject an application from various asset managers.
Cathie Wood's ARK Investment and 21Shares are expected to be the first applicants to be considered. Others include BlackRock, Wisdom Tree Funds, Invesco, Galaxy Digital, Valkyrie Funds and Bitwise.
Whether an ETF lives up to the investor hype remains to be seen.
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