Bitcoin price forecast: Bitcoin down to $34,500
Bitcoin price forecast: Bitcoin down to $34,500
Bitcoin is trading around $34,500 on Friday after failing to break through the $36,000 mark in the previous session.
Some analysts attribute the high volatility in the cryptocurrency market to the fact that many investors are focusing on long-term goals in anticipation of the imminent approval of a spot Bitcoin ETF.
While the U.S. Securities and Exchange Commission (SEC) continues to push back the timeline for approval of a spot Bitcoin ETF, it cannot do anything but approve, as it previously approved a BTC futures ETF in 2021.
The SEC's approval of a spot Bitcoin ETF would allow BTC to emerge from the gray area and trigger a surge in demand for the asset.
"An approved Bitcoin ETF could spur institutional investment and usher in a transformative era for cryptocurrency. Such an ETF would provide institutional investors with a regulated and familiar investment vehicle, reducing concerns about liquidity, custody, and regulatory uncertainty," said Lucas Keeley, Chief Information Officer at Yield App Platform.
"As cryptocurrencies become more regulated, it means more players will get involved. Many who have been watching from the sidelines may decide to get in on the action," he added.
With Bitcoin miners limiting the supply of BTC in the market from $1 billion a month to $500 million after the halving, a Bitcoin shortage will be created, leading to a significant increase in the price of the largest cryptocurrency by capitalization.
"You can never have too many Bitcoins," said Michael Saylor, founder of MicroStrategy.
"You're going to see $12 billion of natural sales per year turn into $6 billion, so spot Bitcoin ETFs will be a source of increased buying pressure," he said.
It's worth noting that while many cryptocurrency market participants remain optimistic about Bitcoin's continued bullish growth, some believe that BTC has begun a bearish rally.
Proponents of a bearish rally believe that rising Bitcoin prices have spurred large-scale profit-taking by investors and that recent strong macroeconomic data could lead the Federal Reserve to keep interest rates higher for an extended period of time, negatively impacting the asset's price.
A crypto analyst known by the pseudonym "Crypto Soulz" wrote on his X page (formerly Twitter) that Bitcoin will see a significant pullback after a 35% surge.
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BTC is currently down 1.97% and trading at $34,508.77.
Should Bitcoin resume its growth, the next resistance level is at $34,750, which, if breached, will allow the asset to test key resistance at $35,150. A consolidation above this level will create momentum for a move towards $36,000.
If BTC fails to consolidate above resistance at $35,150, it could continue lower to support at $34,000, a break of which would open the way to $33,200. The next support for the downside is near the low of $34,350 and the trend line.
The next major support is near the $35,000 level. A move below $34,000 would risk a further decline towards $33,200.
Also read: Coinbase launches crypto futures trading for U.S. clients.
