Bitcoin price prediction: Asset continues to fight for $37,000 level
Bitcoin price prediction: Asset continues to fight for $37,000 level
On Monday, the price of Bitcoin failed to consolidate above $37,200 and fell to the $36,900 area, but it continues to show a gradual uptrend.
Meltem Demirors, Chief Strategy Officer at CoinShares, believes that institutional investors are betting on the upcoming BTC rally as flows into Bitcoin products are on the rise.
"We have seen high activity and higher trading volumes over the past six weeks. The flows into Bitcoin products are now at $760 million, which is up from 2022. So, in my opinion, these are all indicators that institutional buyers are starting to position Bitcoin for potential growth at the end of the year and into the first quarter of next year," Demirors said.
Moody's recently downgraded the outlook for the U.S. credit rating from "stable" to "negative" due to large budget deficits, declining debt affordability, and the ongoing process of political polarization in Congress. Although the U.S. still maintains an "AAA" rating, the downgrade reflects growing concerns about the U.S. government's debt and its inability to meet its fiscal obligations.
As such, there has been speculation that Bitcoin could become a safe-haven asset for investors looking to hedge against the potential risks of a weakening U.S. economy, as its decentralized nature and limited supply make BTC one of the best assets to protect against inflation and other economic risks.
Arthur Hayes, founder of BitMEX, also believes that buying BTC during times of geopolitical uncertainty and wars can be the best decision for a crypto trader.
Hayes pointed out that Bitcoin has proven to be highly resilient to geopolitical turmoil, outperforming traditional assets such as long-term U.S. Treasuries during such conflicts. By comparison, the price of BTC has risen 26% since the start of the military conflict in the Middle East, while the price of TLT ETF, a long-term U.S. Treasury bond, has risen just 3%.
"Bitcoin has proven to outperform bonds in times of war. Even if there is an initial period of weakness, I will buy on the dip," Hayes concluded.
In addition, many analysts are predicting another bullish rally for the first cryptocurrency, pointing out that there is growing buying pressure in the BTC market due to the significant accumulation of Bitcoin holders and optimism about the potential approval of all 12 spot Bitcoin ETFs by the U.S. SEC.
Currently, the price of BTC is down 0.59% to trade at $36,950.
The next resistance level is at $37,200, and the key resistance level is at $37,500. A break above this key level will allow the asset to continue its uptrend to the $38,000 and above area.
However, if BTC fails to rise above the resistance zone at $37,200, it may test the support at $36,700, the breakdown of which will open the way to $36,500 and below.
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