The Bitcoin market has seen some consolidation since Monday, maintaining a price above the $56,000 mark after a brief drop from $65,000 to around $52,600
After a brief yet impactful price drop last Friday, Bitcoin has experienced a period of consolidation in the market. While some traders anticipated a quick recovery following the price dip, others believe that lower lows may still be on the horizon before a significant upward movement begins.
One crypto analyst, known as “VirtualBacon” on X (formerly Twitter), has shared their perspective on an impending “huge Bitcoin shakeout.” According to the analyst, over the next 2-3 weeks, BTC could experience one last decline before kicking off a bull run.
“Panic is everywhere. People are calling for lows in the $40,000s, claiming the bull run is over,” VirtualBacon noted. However, he adds that whether Bitcoin dips to $45,000, $48,000, or even $43,000, a bull run is still on the cards. This period often sees a shakeout of many holders right before significant rallies.
While the current charts indicate lower highs and lower lows, suggesting a downtrend, VirtualBacon believes that a prolonged bear market appears unlikely.
The primary driver of this sentiment is the anticipated liquidity injection and interest rate cuts by the Federal Reserve, conditions that typically favor a bull run, particularly looking ahead to 2025.
Another crucial aspect of VirtualBacon's analysis lies in Bitcoin’s key support level — the 100-week Exponential Moving Average (EMA). This level has historically marked the end of bear markets, with Bitcoin bouncing off similar levels in 2015 and 2019.
Currently, this support level sits around $45,000, with various technical indicators, including Fibonacci retracements and high-volume nodes, suggesting strong support in the $43,000 to $49,000 range.
Even if Bitcoin does dip into this range, the analyst believes it would likely be a temporary “wick” rather than a sustained drop. VirtualBacon also highlights that some traders speculate about a touch at around $50,000 to $51,000.
However, this could be risky; a touch at these levels might trigger a cascading liquidation event that could push prices to $44,000.
How Upcoming Fed Decisions May Fuel Bitcoin Bullish Momentum After a Brief Dip to Lower Lows
After dipping to lows of around $52,600 on Friday, Bitcoin has largely maintained a price above the $56,000 mark. This price action comes ahead of key upcoming Fed decisions.
According to VirtualBacon, September has historically been a weaker month for Bitcoin. However, the upcoming months — October, November, and December — tend to show more bullish trends.
VirtualBacon notes that over the last decade, eight out of ten Octobers have ended positively for Bitcoin, with November also being historically strong. This backdrop aligns with the upcoming Fed decisions.
“I would say there is a 70% chance of a 25 basis point rate cut and a 30% chance of a double cut at this FOMC meeting,” the analyst notes.
This, he adds, could begin a 12-month liquidity injection cycle that typically boosts risk assets like BTC and propel the leading cryptocurrency above current all-time high levels of $73,700.
Despite the prevailing fear in the market, as the Fear and Greed Index indicates, the analyst argues that this fear may be irrational, especially with the impending monetary policy shifts. As the Fed begins to cut rates, sentiment is expected to shift rapidly, potentially leading to renewed interest and investment in Bitcoin.
BTC trades at $56,930 when writing, recording a slight 0.7% gain in the last 24 hours.
The above is the detailed content of Bitcoin (BTC) Market May See a 'Huge Shakeout' Before Bull Run Begins, Analyst Suggests. For more information, please follow other related articles on the PHP Chinese website!

Senator Cynthia Lummis took the stage to speak at the Bitcoin 2024 conference along with Senator Tim Scott, on Friday, discussing cryptocurrency and their vision for its role in the U.S. financial system.

On-chain data shows the Binance exchange has received large net Bitcoin inflows during the past day, indicating that BTC's decline may extend further.

In the ongoing global economic and geopolitical rivalry, the United States may have a powerful new weapon – Bitcoin (BTC). That is the argument made by Sam Lyman

JoeGrand-anethicalhackerandYouTuberwhoiswidelyknownforhisprojectsinvolvingcryptowallets,hassuccessfullyrecoveredalife-changingamountofbitcoin,presentlyvaluednorthof$3millionfromasoftwarewalletthathasbeenlockedformo

Financial experts are warning of an impending peak in US stocks. This may also lead Bitcoin to rise. According to Arthur Budaghyan, an analyst at BCA Research, the US stock market

Cryptocurrencies, commodities, and stocks are among the most popular risk assets for investment and trade, also leading finance indicators.

Powered by the Unbound Fund, this initiative uses Bitcoin as a key to open up Portuguese citizenship via the country's golden visa program.

Crypto analyst Mikybull Crypto has revealed the return of a technical indicator that represents a buy signal for Bitcoin. Based on his predictions, the

Hot AI Tools

Undresser.AI Undress
AI-powered app for creating realistic nude photos

AI Clothes Remover
Online AI tool for removing clothes from photos.

Undress AI Tool
Undress images for free

Clothoff.io
AI clothes remover

AI Hentai Generator
Generate AI Hentai for free.

Hot Article

Hot Tools

SublimeText3 Linux new version
SublimeText3 Linux latest version

WebStorm Mac version
Useful JavaScript development tools

Dreamweaver CS6
Visual web development tools

SAP NetWeaver Server Adapter for Eclipse
Integrate Eclipse with SAP NetWeaver application server.

SublimeText3 Chinese version
Chinese version, very easy to use
