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Bitcoin Surges Above $16,000: Short-Term Rally or Real Recovery?

Bitcoin (BTC) started the month in negative territory. However, prices then retreated as the usual profit-taking kicked in and the focus shifted to the minutes of the Federal Reserve’s latest monetary policy meeting.

It’s hard to tell which direction the price of Bitcoin will go with any sudden change.

Some investors speculate that if the Federal Reserve abandons its current quantitative tightening and rate hike plans, there may be a surge in BTC prices and subsequent short settlements in futures contracts.

Let’s explore.

Fed back to hawkish stance

On a positive note, the Fed said in a statement that it has raised interest rates significantly and may slow down pace of hikes. The dollar fell as markets welcomed lower interest rates. As a result, a 50 basis point hike in December is likely, rather than the 75 basis point hikes seen in the past four times.

Bitcoin (BTC) is in the midst of its biggest correction, so cryptocurrency strategists are advising BTC investors to brace for further sell-offs.

What’s Next for BTC Price?

To his 545,700 Twitter followers, pseudonymous analyst Kaleo warns of a sharp drop in Bitcoin price with the potential for Bitcoin to reach $12,500, Because it has broken the diagonal support on the hourly chart.

“Focus on this, most likely in Further downside before any sort of rally. The inverse pennant has broken below its uptrend support and the next credible level of support is a retest of the trend breakout and support of the 2019-2020 baseline high.”

Trading Viewpoint
        With Bitcoin’s current price at $16,172, Kaleo’s price target is almost a 22% downside. This will result in bitcoin continue to fall. He also believes that when support is near $12,500, Bitcoin will unexpectedly rebound. According to the chart, from A V-shaped bottom recovery in this crash, followed by a period of sideways movement in the spring of 2023 is logical. Overall, Kaleo clearly Suggesting that Bitcoin will finally be reborn after entering a sideways period in the first quarter of 2023, the bullish momentum surged to $40,000.

        Bitcoin pre-halving rally

        A breakout of the high time frame log downtrend, as shown in the chart below, is where analysts expect the most dramatic shifts in momentum. Instead of a new all-time high, he predicts a retracement to the $30,000 to $40,000 region followed by further volatility leading to the next halving.

        Trading Viewpoint

            Therefore, when the Bitcoin halving occurs in March 2024, the range of BTC will be brighter, and the reward for mining Bitcoin will decrease. half, resulting in a reduction in the total number of bitcoins created each day. This could lead to some good outcomes for long-term BTC holders.

            In summary,

            Kaleo suggested that he thinks Bitcoin will reach a new all-time high by late 2024 or early 2025.

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