- Bitcoin experienced a significant market downturn in Q4 2023.
- Bitcoin’s block subsidy halving in April 2024 could impact price trajectory.
- Bitcoin’s daily graph indicates a dominant downward trend.
During the fourth quarter of 2023, Bitcoin
Despite challenges, Bitcoin remains a focal point of global interest, particularly as we approach 2024. The upcoming Bitcoin halving and the potential SEC endorsement of Bitcoin ETFs are expected to alter the cryptocurrency market significantly.
Concurrently, market participants are comparing the present bearish trend and Bitcoin’s past declines in 2015-16 and 2019-20. During these periods, the digital currency demonstrated remarkable recoveries, instilling confidence among its dedicated investors.
Furthermore, some industry specialists forecast that the block subsidy halving in April 2024 could serve as a pivotal moment for the price trajectory of Bitcoin. There is speculation that the BTC/USD exchange rate could escalate to $46,000 by that time despite the risk of potential downturns.
In the context of Bitcoin’s monthly returns, it has been observed that BTC has experienced six consecutive “negative Septembers” since 2016. Of these six years, the most significant loss was recorded in 2019 at 13.47%, whereas the losses in 2022 were comparatively less at 3.12%. This historical data has led to speculation within the community about the potential strengthening of the bearish trend.
The analytics firm IntoTheBlock has recently provided new data on the actions of significant Bitcoin owners. Wallets that hold a minimum of 0.1% of the total circulating Bitcoin, worth more than $500 million, have seen an impressive increase of $1.5 billion in their holdings during the last two weeks of August.
What’s the forecast for the price of BTC?
A review of Bitcoin’s latest price fluctuations indicates a dominant downward trend on the daily graph. The 50-day exponential moving average (EMA) currently stands at $27,428, highlighting the bearish mood. The daily relative strength index (RSI) is 42, suggesting Bitcoin is nearing the oversold zone. Concurrently, trading volume has slightly increased, with a 4.68% rise in the last 24 hours.
This implies that the bears are taking advantage of rallies close to $1,650, and this limited-range trading might not last. Should the price keep falling below $1,600, it might indicate the bears are gaining dominance, with slight support at $1,550. There’s also a possible additional decrease to $1,368.
Positively, it is anticipated that the bears will strongly protect the area around $1,650. Should purchasers break through this resistance, the pair could rally towards the 50-day SMA at $1,772.
