Bitcoin Could Dip Below $100,000 Before Recovering
Geoffrey Kendrick, Standard Chartered’s Global Head of Digital Assets Research, said in a note that a decline below $100,000 now seems “inevitable,” though he expects the drop to be brief.
He said, “I am now thinking a dip below 100k seems inevitable, although the dump may be short-lived,” adding, “Stay nimble and ready to buy the dip below 100k if it comes, it may be the last time Bitcoin is EVER below 100k,” as quoted by Benzinga.
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Watch for Capital Rotation From Gold to Bitcoin
Kendrick highlighted three key signals that could indicate when Bitcoin’s uptrend might resume. First, he is watching for a potential rotation of capital from gold into Bitcoin, as per the report. He pointed to the October 21 gold crash, which coincided with a rise in Bitcoin, suggesting that a continuation of this trend could mark a bottom for the digital asset.
Liquidity Measures Could Signal a Turnaround
Second, Kendrick is monitoring liquidity measures, which he says are tightening. He noted that potential Federal Reserve intervention could provide a positive boost for Bitcoin, as per the Benzinga report.ALSO READ: Citi cuts base lending rate to 7% – here’s what it means for your loans and credit
BTC 50-Week Moving Average Remains Key Support
Finally, Kendrick is keeping an eye on Bitcoin’s 50-week moving average, which has acted as a support level since early 2023, when Bitcoin traded around $25,000.
ETF and Corporate Demand Driving Interest
Kendrick’s cautious optimism is shared by other analysts. Matt Hougan, Bitwise’s chief investment officer, said in a memo that investors should be patient, comparing Bitcoin’s trajectory to that of gold. He noted that gold’s rally this year was fueled by central bank buying, but prices remained muted initially due to “price sensitive” investors selling into the rally, as per the Benzinga report.
Hougan said Bitcoin is currently seeing strong demand from ETFs and corporations but has not yet experienced a rally that matches that demand. Like gold, he expects a period where price-sensitive investors are exhausted before Bitcoin can surge.
Bitcoin’s Long-Term Momentum Intact
Bitcoin was most recently trading at $111,000, up 13% year-to-date, as per the report. Both Kendrick and Hougan have projected that Bitcoin could reach $200,000 by the end of December, suggesting that while a dip below $100,000 may be imminent, the digital currency’s long-term momentum remains intact, as reported by Benzinga.
FAQs
Is Bitcoin about to fall below $100,000?
Yes. Standard Chartered predicts a short-term dip below $100,000, though it may be brief, as per the Benzinga report.
How has Bitcoin performed recently?
It fell 19% from its all-time high of $126,200 but was trading at $111,000, up 13% year-to-date, as per the Benzinga report.
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