Bitcoin price prediction, Bitcoin (BTC) has been a focal point of interest within the financial markets since its inception.
Katie Stockton, founder of independent research firm Fairlead Strategies, has pointed out that the recent increase in Bitcoin's price indicates it is in an "overbought" state. She predicts that Bitcoin's price may experience a double-digit correction in the short term.
In a report on Tuesday, Stockton noted that although Bitcoin briefly surpassed the $100,000 mark on Monday, she believes its price may weaken further in the near term. She expects Bitcoin to find support around $84,500, suggesting a potential decline of about 13% from current levels. If the correction exceeds expectations, the support level could extend to $73,800, at which point Bitcoin might face a decline of up to 25%.
She emphasized that this rebound could dissipate quickly, and the peak of this rally may not surpass the highs from December of last year. According to the stochastic indicators on the weekly chart, Bitcoin is currently in an "active overbought downtrend," indicating limited upside in the short term.
Despite the short-term risks of a price correction, Stockton maintains an optimistic view of Bitcoin's long-term prospects. She believes that Bitcoin's price in 2025 could still benefit from a strong market backdrop, especially as optimism around Bitcoin rises again post the U.S. presidential election.
Some investors are anticipating that a potential interest rate cut by the Federal Reserve and a new government-friendly approach to cryptocurrencies could provide additional support for Bitcoin's price.
In addition to technical factors within the market, global interest in Bitcoin's price trend continues to grow. Recent discussions about the U.S. potentially establishing a national Bitcoin strategic reserve under Trump's leadership have sparked heightened interest within the global cryptocurrency community. This move is viewed as a potential model for other countries, especially in an environment of increasing global economic uncertainty, where Bitcoin is gradually seen as a viable asset diversification tool.
For example, Aleš Michl, the Governor of the Czech National Bank (CNB), revealed in an interview with CNN Prima News that the bank is considering incorporating a small amount of Bitcoin into its foreign exchange reserves as part of its diversification strategy. Although he emphasized that this would not be a major investment decision, the news underscores Bitcoin's growing potential as a global reserve asset.
While the short-term risks of a Bitcoin price correction should not be overlooked and the market is cautious regarding its technical aspects, the long-term outlook for Bitcoin remains strong. Particularly in a context of global economic turmoil and increasing challenges to traditional financial systems, Bitcoin could become a future direction for reserve asset allocations in various countries. Investors should adopt flexible strategies and closely monitor Bitcoin's price fluctuations.
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