Bitcoin Price Expected to Decline Before Potential Upswing, Says Wolfe Research
It’s predicted that the price of bitcoin may worsen before improving, according to Wolfe Research. Bitcoin has remained stagnant since July due to lack of interest from the market. Following the banking crisis earlier this year, liquidity has left the market, resulting in increased regulatory scrutiny and uncertainty surrounding cryptocurrencies. Investors, whether currently involved in the market or not, are adopting a wait-and-see approach for the coming months.
Rob Ginsberg, a technical analyst at Wolfe Research, stated, “The coin has been trading within a range of approximately $2,000 since late June, with $30,000 being the midpoint of this range. It has the potential to break out and rise further, but it is more likely to decline before that happens, as has been the recent trend.” Ginsberg also highlighted that in the past two years, bitcoin has experienced abrupt growth more than eight times after a period of consolidation. He further added, “Technology stocks are retracting, interest rates are increasing, and the value of the dollar is rising once again. These short-term obstacles are likely to push the price of BTC lower and keep trading volume subdued. However, based on historical patterns, when the price finally does increase, it will likely do so abruptly and dramatically.”
Bitcoin has witnessed a nearly 3% decline this month, primarily due to a 2.5% drop on Thursday. For the quarter, which historically tends to be weak for bitcoin, it is down by 6%. Ginsberg has identified the $31,000 level as a crucial resistance level to monitor. Additional reporting by ‘s Michael Bloom.
