Key takeaways
- BTC is trading above $109k after adding 1% to its value in the last 24 hours.
- Standard Chartered analysts believe BTC’s price could dip below $100k before resuming its rally.
Bitcoin could slide below $100k, says Standard Chartered analysts
Bitcoin has been extremely volatile this month, dropping to the $102k level just days after hitting a new all-time high of $126k. The price has failed to recover since the October 10 liquidation event.
Standard Chartered’s head of digital asset research, Geoffrey Kendrick, told investors on Wednesday that Bitcoin could drop briefly below the $100,000 mark by the weekend. The analyst added that the dip is inevitable but expects it to be temporary. The dip should serve as a window for investors, but maintains that it remains uncertain how low Bitcoin could go. In his note, Kendrick wrote that,
The question now is, how far does Bitcoin fall before finding a base?
He added that this may be the last time ever Bitcoin falls below the $100k level. According to Kendrick, the all-time high recorded on October 6 was in line with short-term price targets, but failed to rally higher due to growing macroeconomic concerns caused by renewed US-China trade tensions.
The analysts pointed out three factors that could boost Bitcoin’s price in the near term, including a massive selloff in Gold earlier this week. He hinted at a possible rotation of funds from precious metals to more risky assets such as cryptocurrencies.
The second factor is the monetary policy, with signs that the Fed could reduce interest rates once again, suggesting another Bitcoin rally. Kendrick maintains that Bitcoin’s price could hit $200k despite the ongoing market conditions.
BTC eyes $114k as market conditions improve
The BTC/USD 4-hour chart remains bearish and efficient despite Bitcoin adding 1% to its value in the last 24 hours. At press time, BTC is trading around $109,650 but could rally higher in the near term.
The RSI of 51 shows that the bulls are regaining control of the market, with the MACD lines also within the positive territory.
If the recovery continues, BTC could rally towards the weekly high of $113,964 over the next few hours. An extended bullish run would allow it to take out the ILQ level at $116k. However, if the bearish trend persists, Bitcoin could drop below the weekend low of $105k.