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Bitcoin might regain its historical peak of $125,100 in the upcoming week, albeit not without another significant correction, as per experienced trader Peter Brandt.
“Either a substantial shakeout, which would be validated by an ATH swiftly within the next week or so,” he mentioned, although he conceded there might also be a much more pessimistic result.
“Or a breach of the parabola, which historically has led to a 75% price drop. I believe the era of an 80% decline is finished, but perhaps we may retrace to $50-60,000 and test the lower boundary of the banana.”
Traders must contemplate “long-term risk,” asserts analyst
The cryptocurrency market plummeted on Friday following US President Donald Trump’s declaration of a 100% tariff on Chinese imports, leading to over $19 billion in liquidations throughout the market.
After its fall from nearly $121,000 to as low as $102,000 on Friday, Bitcoin (BTC) has recovered to about $112,400 at the time of this publication, according to CoinMarketCap.
“If anything, this weekend served as a reminder to exercise extreme caution with leverage, and even ratios above 1.5x are perilous,” Capriole Investments founder Charles Edwards informed Cointelegraph.
“They do, and you must always weigh multi-year, long-term risks,” he added. He characterized the weekend’s fluctuations as temporary, describing his forecast for the upcoming weeks as simply “up.”
Other analysts remain hopeful, pointing to broader macroeconomic indicators as signs that new capital could flow into the cryptocurrency market in the weeks ahead.
“Acquire everything,” advises BitMEX co-founder Arthur Hayes
BitMEX co-founder Arthur Hayes stated in a Twitter post on Tuesday that a buying opportunity might be emerging in the crypto market after US Federal Reserve Chair Jerome Powell indicated that quantitative tightening “is concluded.”
“Load up the … truck and acquire everything,” Hayes remarked.
Quantitative easing is favorable for crypto as it incentivizes banks to lend more and makes borrowing less expensive for consumers and businesses through reduced interest rates.
Related: Bitcoin price regains key level as traders state $150K BTC remains viable
Swyftx chief analyst Pav Hundal expressed to Cointelegraph on Tuesday that “the fundamental economic indicators are the primary narrative for Bitcoin presently.”
“Inflation is experiencing a double challenge right now from declining oil prices and demand, while at the same time, the US labor market is exhibiting signs of strain,” Hundal noted, as US inflation hit 2.90% in August, the highest since January.
“The Fed has an obligation to pursue full employment, and it all just seems unavoidable that we will witness further rate cuts this month. This is an ideal situation for Bitcoin,” he mentioned.
Meanwhile, macroeconomist Lyn Alden recently expressed on a podcast that she is leaning “toward this next quarter being quite favorable” for Bitcoin.
Magazine: Review: The Devil Takes Bitcoin, a captivating history of Mt. Gox and Silk Road
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