Bitcoin Floor: CEO Predicts $38,000 Will Be The Lowest BTC Goes
August 22 2024 - 4:00PM
NEWSBTC
Bitcoin (BTC) has been gathering some momentum in the crypto sphere
lately, crossing the $60,000 mark against multiple analysts’
signals. The world’s leading cryptocurrency has been on a wild
ride, with its price fluctuations going haywire during the past few
weeks. Related Reading: Tron Rises 24% Amid New Developments – Will
The Uptrend Continue? Bullish Factors Driving Bitcoin Price One
major driver behind the recent price surge in Bitcoin is the
understanding that a spot Bitcoin ETF is likely to be approved by
the SEC. With immense anticipation of such a decision from the SEC,
which is likely to finally open the door for increased
institutional investments in the cryptocurrency, many investors are
risking an entrance at the current levels. Another factor that has
been driving Bitcoin’s price has been the reduction in new BTC
supply following the halving event in the second half of 2024.
Generally, prices for Bitcoin have soared after halving by
multiples, since the reduced supply directly correlates with higher
demand and price. #bitcoin 200wma over $38k
pic.twitter.com/olAw6BOjgz — Adam Back (@adam3us) August 21, 2024
Bitcoin’s 200-Week Moving Average Provides Strong Support
Blockstream CEO Adam Back explained that the 200-week moving
average of Bitcoin had risen past $38,000, a level that now
provides solid support for the cryptocurrency. Indeed, the 200MA
has repeatedly been treated as one of the most important indicators
in Bitcoin analysis since the cryptocurrency never went below this
moving average. Another revealing metric as far as new Bitcoin
gains are concerned would be the holding patterns of the asset.
According to information published by the online site BTCDirect,
69% of BTC supplying has not moved for a year or even longer. Of
course, another instance of a lessening volume of BTC in
circulation helps to alleviate selling pressure on the asset
further, cementing a bullish thesis for Bitcoin. Bearish Factors To
Consider At the time of writing, Bitcoin was trading at $61,245, up
3.0% in the last 24 hours, and sustained a 4.7% gain in the last
seven days, data from Coingecko shows. Despite the recent price
spike in Bitcoin, there are some bearish factors that remain in the
background, one of which is the Mt. Gox repayments that are likely
to put more selling pressure into the market. Earlier in the week,
the infamous exchange made another whopping transfer to Bitstamp,
setting off possible selling pressure. Related Reading: XRP Smashes
Through Resistance, Could Soar 15%, Analyst Says Other bear factors
are a lack of readily apparent bull catalysts near term for
Bitcoin, with the following being the latest from banking behemoth
JPMorgan, advising clients to be very mindful before buying into
Bitcoin’s recent price recovery, as the cryptocurrency is likely to
face headwinds into the next several months. Featured image from
Pexels, chart from TradingView
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