Image(s) are kindly provided by Unsplash
Our analysis of the situation
In the wild and wacky world of cryptocurrency, where volatility is almost a second language and every chart tells a story, Bitcoin (BTC) is about to pull off a theatrical twist that would make even the most seasoned soap opera writers green with envy. Buckle up, folks, because according to crypto analyst Cole Garner, Bitcoin might just be gearing up for profound capitulation before channeling its inner superhero for a full bull market comeback!
Garner recently took to X, where he graciously spilled the tea on his price analysis of BTC. Armed with charts and a twist of wit, he claims that Bitcoin could be flirting with a downturn, which he attributes to an intriguing phenomenon known as tightening on-chain liquidity. Sounds sexy, doesn't it? In crypto lingo, this means that the available money for buying Bitcoin is getting a bit squeeze-happy—less cash in the pool, more potential for a plunge.
But fret not, fellow crypto enthusiasts! A little stormy weather now could lead to a rainbow-filled bull market later. After assessing global liquidity from central banks, Garner spotted what he described as a “buy signal” for digital assets. However, before we uncork the champagne, he warns that we might have to endure some more bumpy rides before any liquidity-enhancing measures from the movers and shakers of the central banks—looking at you, Fed and PBoC—kick in.
Speaking of the People’s Bank of China (PBoC), Garner hinted at their recent decision to pump the brakes on liquidity injections, which could make crypto traders as anxious as a cat in a room full of rocking chairs. If market participants were hoping for a feast, they might have to settle for crumbs as this news dampens expectations for risk assets, including our beloved cryptocurrencies.
And if that’s not enough to keep everyone on their toes, let’s not overlook the current landscape of stablecoins. Garner is eyeing those pesky stablecoin supplies, particularly USDT and USDC on Bitfinex, which are showing a decline in their quarterly rate of change. Translation: lower stablecoin supplies could lead to more price dips in the short term. It’s like trying to buy pizza with Monopoly money—you might end up with a sad, empty plate.
But wait! Before you hit the “Sell” button out of sheer panic, Garner brings back some glimmers of hope. He notes that Bitcoin has managed to print a higher high on the 8-hour chart. Yes, you heard that right! So even if Bitcoin decides to take a little dip into the high $40,000 range, it’s still swimming in relatively bullish waters. Remember, it’s not quite the time to panic-sell your Bitcoin stash just yet; hasty decisions are best left for that awkward family dinner.
Ali, another sharp mind in the crypto space, seems to echo Garner's sentiment, suggesting that Bitcoin could be jigging its way down into a descending parallel channel with a big, ol’ risk of hitting around $52,000. He’s convinced BTC needs to bust through the $66,000 barrier, or else it’s back to the drawing board for the bulls.
Now, as we stare down the barrel of 2024, Bitcoin advocates are crossing their fingers for interest rate cuts from the U.S. Federal Reserve. A little softening of the rates could spark a new rally, but it’s important to remember that BTC has to navigate a gauntlet of hurdles before it can confidently strut to new all-time highs.
Interestingly, October seems to have waved its magical wand just in time, as Bitcoin managed to turn its price green—lifting the spirits of bulls everywhere. Just look at those hopeful “uptober” vibes, reminiscent of previous months marked by spectacular increases. Currently trading at around $60,711, this number still has some traders holding their breath, hoping it doesn’t dip back down into the danger zone.
So, what’s the final verdict? Well, if you’re in the crypto game, it seems we’re at a crossroads. Buckle up for a potential short-term dip, but keep an eye on the horizon for the brighter bullish days ahead. After all, if history has taught us anything, it’s that in the world of Bitcoin, fortune favors the bold—and sometimes the patient!
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
Image(s) are provided by Unsplash and/or other free sources. They are illustrative and may not represent the content truly.
0 Comments
Please, behave!