by Bitcoin’s Recent Price Movements
Bitcoin’s (BTC) rapid recovery from its sub-$50,000 price point last Monday has rejuvenated bullish sentiment within the cryptocurrency market. Many investors are now speculating about a potential rally that could push Bitcoin to $90,000 and beyond. However, not all analysts are optimistic.
Bearish Outlook from Analysts
According to Alex Kuptsikevich, a senior market analyst at FxPro, the likelihood of Bitcoin experiencing a short-term decline is significantly higher than the chance of a price increase. He stated, “Bitcoin is likely to fall by $5K rather than rise by the same amount,” pointing to current market conditions.
Technical Indicators Suggest Weakness
Kuptsikevich’s bearish perspective is rooted in Bitcoin’s inability to maintain gains above the $60,000 mark, particularly following the recent “death cross.” This technical term refers to a bearish crossover of the 50-day and 200-day simple moving averages (SMA), which often signals a downturn in price.
“Bitcoin does not break above $60K and faces selling pressure after it attempted to break above the 50- and 200-day MAs late last week, indicating seller dominance,” he explained.
RSI Signals Further Downtrend
Further supporting his analysis, Kuptsikevich highlighted the 14-day relative strength index (RSI), a momentum oscillator that gauges the speed and change of price movements. The recent data shows that the RSI no longer indicates oversold conditions, suggesting that Bitcoin may have room for further declines. An RSI below 30, which was observed after last Monday’s crash, typically signifies oversold conditions, often leading to a price recovery. However, the current RSI has moved out of that territory, signaling a loss of momentum for any potential upward movement.
Impact of Economic Data on Bitcoin
The outlook for Bitcoin may worsen if the upcoming U.S. July consumer price index data, set to be released Wednesday, displays persistent inflation. Such news could extinguish hopes for Federal Reserve rate cuts in the near future, impacting Bitcoin and the broader cryptocurrency market.
Recent Recovery Stalls
Although Bitcoin briefly surpassed the $60,000 level late last week, recovering more than 50% of the decline witnessed in the days leading up to August 5, this resurgence appears to have stalled. Additionally, pro-crypto Republican candidate Donald Trump has lost ground to rival Kamala Harris in prediction markets linked to the upcoming U.S. elections on November 4, further complicating the landscape for Bitcoin investors.
As investors remain watchful of market developments and economic indicators, the future of Bitcoin continues to be a topic of intense scrutiny. For those interested in exploring other cryptocurrencies, check out our detailed analysis on XRP and predictions for its price trends here.
For real-time updates on Bitcoin prices, visit CoinMarketCap.
