Bitcoin has been on a wild ride lately, with prices dropping over 19% from their peak. Experts are watching closely to see what’s next for the cryptocurrency.
US Demand is Key
The main reason for Bitcoin’s recent struggles is a lack of demand, particularly in the US. Coinbase, a popular US exchange, has seen a significant drop in Bitcoin trading volume, which is a bad sign for the bull market.
The CEO of CryptoQuant, Ki Young Ju, believes that a rebound in US demand is crucial for Bitcoin to regain its momentum. He thinks this might happen in the fourth quarter of 2024, but for now, we’re in a period of consolidation, not a full-blown crash.
Technical Analysis: The $54,000 Battleground
Bitcoin is currently holding above a key support level of $54,000. This is a crucial level, and if it breaks, we could see a deeper correction.
Another important technical indicator is the 4-hour 200 moving average (MA), which is currently at $59,263. Bitcoin needs to break above this level to signal a shift in market sentiment and potentially kickstart a new bull run.
If Bitcoin falls below $54,000, the next target could be $49,000. This would be a bearish signal, and investors would need to be extra cautious.
What’s Next?
The next few months will be crucial for Bitcoin. If US demand picks up and Bitcoin can hold above key support levels, we could see a rebound. However, if demand remains weak and Bitcoin breaks below key support, we could be in for a more significant correction.
