According to a report published by Matrixport, the price of Bitcoin (BTC) could reach $63,000 by March 2024. It is important to note that the digital asset management company did not come to this conclusion without giving reasons.
In the report, Matrixport stated that there are underlying factors that could push BTC higher than it currently is. One of the catalysts mentioned is the approval of the spot Bitcoin ETF. Others included the potential FOMC interest rate cuts, the upcoming Bitcoin halving, and the 2024 US presidential election.
Bitcoin will fall first
The price of Bitcoin was $51,043 at press time. Therefore, Matrixport’s prediction meant that the coin could gain another 26% before the halving. From a technical perspective, BTC price could fall below $51,000 in the short term.
This was because the Moving Average Convergence Divergence (MACD) had fallen into negative territory. This decline implies increasing bearish momentum that could lead to a downward move in prices.
Should BTC fall, bulls would have to defend the critical support at $47,764. The ability to defend this region could trigger a rise in the coin. But if Bitcoin does not fall that low, bulls would need to break the upper resistance at $52,051.
Coin issue
BTC/USD 4-hour chart (Source: TradingView)
Bullish signals are emerging
A successful break above resistance could push BTC towards $60,000. But if there is another rejection, the coin could fall below $50,000. However, the RSI value fell, indicating weakening buying momentum.
If the value falls below 40.00, Bitcoin could fall to $49,000. However, indications from the daily chart showed that a price increase was possible. This was due to the signals from the Exponential Moving Average (EMA).
At press time, the 20 EMA (blue) had crossed the 50 EMA (yellow). Additionally, the daily BTC/USD chart showed that the coin price had risen above both EMAs. This suggests a bearish thesis for Bitcoin in the short to medium term.
If this position remains the same in the future, BTC could increase its value by 26% within a month. But if the 50-EMA reverses over the 20-EMA, the bullish bias could be invalidated.
Coin issue
BTC/USD daily chart (Source: TradingView)
Going forward, traders may also need to pay attention to the outcome of the FOMC meeting. Should the Fed decide to cut interest rates, Bitcoin could see an influx of liquidity that could drive up the price. However, if interest rates stay the same or rise, the price of Bitcoin could decline.
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