Bitcoin Price Forecast This Week Insights and Analysis
Bitcoin’s recent price surge to $63,700, a 7% increase from the previous week’s crash, has sparked optimism for a potential recovery. Analysts are closely monitoring market movements tied to the upcoming US 2024 Presidential Elections, which have contributed to the positive sentiment.
Leading crypto analyst Doctor Profit has identified Bitcoin’s formation of a new bottom, indicating a shift in market sentiment and potential scenarios for recovery. The Fear and Greed Index for Bitcoin has hit its lowest level in 18 months, while the Relative Strength Index (RSI) has reached a year-long low, suggesting a possible bottom formation.
Analysts believe that Bitcoin is consolidating within the $57,000 – $60,000 range, which is crucial for establishing a local bottom. While occasional drops below this range may occur to trigger liquidity hunts, buying activity is expected to counter any drop within the specified price range.
There is also a focus on alleviating fears surrounding the repayment of Mt. Gox. Out of the total 142,000 BTC set for distribution, only 65,000 BTC will be returned to retail investors, as institutional buyers have already acquired the remaining tokens at fixed rates. This acquisition by institutions reduces the risk of a massive sell-off, as long-term BTC holders are expected to show minimal interest in selling their holdings to these institutions.
The ongoing miner capitulation, historically a precursor to significant bullish trends, is another critical factor to consider. With miners currently operating at a loss, it is anticipated that Bitcoin’s price will adjust upwards, potentially surpassing $80,000 sooner than expected. This adjustment is necessary to maintain mining profitability and network integrity, and analysts are confident in Bitcoin’s imminent bullish trajectory.
In terms of altcoins, the launch of the ETH ETF has been delayed to mid to late July, possibly extending into August. Despite this timeline shift, market predictions remain unchanged, with a potential bull run forecasted from mid-July to mid-August, contingent on the ETF launch dates.