Is Bitcoin Price Going to Drop More After Monday?

What's in store for Bitcoin in the near future? Is the Bitcoin price going to drop more after Monday? Let's take a look.

Prasanna Peshkar

Prasanna Peshkar

March 17, 2024 2:59 PM

Is Bitcoin Price Going to Drop More After Monday?

This article examines Bitcoin’s recent sharp drop from its peak, delving into the factors behind it and offering insights into where the leading cryptocurrency might be headed next. What’s in store for Bitcoin in the near future? Is the Bitcoin price going to drop more after Monday?

Bitcoin recently saw a significant drop, plummeting to 66,885, marking a 9% decrease from its all-time highs. This decline can be attributed to several factors, including profit-taking by traders following a remarkable 175% surge last year, alongside escalating uncertainty surrounding US economic policies, notably anticipated interest rate cuts.

The cryptocurrency’s downturn can also be linked to the broader economic environment, particularly in the United States. Elevated inflation rates surpassing expectations have dashed earlier optimism regarding potential interest rate reductions. This economic ambiguity has heightened Bitcoin’s volatility, as highlighted by City Index analyst Matt Simpson. Historical trends reveal significant fluctuations in the currency following record peaks.

Bitcoin Price To Increase or Decrease?: What Could be the Impact of Bitcoin halving?

Bitcoin is renowned for its boom-and-bust cycles, partly fueled by a phenomenon known as “Halving.” Scheduled approximately every four years, the next Halving is set for April. This event will further diminish the daily production of Bitcoin to a mere 450 BTC. Such scarcity mechanisms are pivotal reasons why enthusiasts perceive Bitcoin as valuable, given its capped total supply of 21 million coins.

Bitcoin’s price often exhibits an upward trend following Halving events. This anticipation stems from the reduced supply of new Bitcoins entering the market, potentially leading to increased demand and a subsequent price surge.

Is Bitcoin Price Going to Drop More After Monday?

In 2024, the USA saw the introduction of exchange-traded Bitcoin funds (ETFs), including one managed by BlackRock, which quickly amassed a staggering $15.5 billion in just over two months. Despite this institutional involvement, regulators and policymakers remained wary of the asset’s volatility. Entities like the Bank of England cautioned investors about potential significant losses.

Analyzing Bitcoin’s recent performance and market indicators, it’s crucial to consider various factors to predict its price movement after Monday. Over the past year, Bitcoin has exhibited remarkable growth, soaring by 144%. This impressive surge not only demonstrates its resilience but also underscores its attractiveness to investors seeking high returns.

Furthermore, Bitcoin has outperformed a significant portion of the top 100 cryptocurrencies, surpassing 70% of them in terms of price appreciation over the same period. Notably, it has even outpaced Ethereum, a key competitor in the cryptocurrency space, suggesting robust investor confidence in Bitcoin’s potential.

Technical analysis reveals that Bitcoin is currently trading above its 200-day simple moving average, indicating a bullish trend in the market. This level of sustained upward momentum suggests that Bitcoin may continue to attract buying interest, supporting its price stability or potential further gains.

Moreover, Bitcoin has experienced 18 green days out of the last 30, representing a solid 60% positive performance rate. This consistent pattern of positive trading days indicates a prevailing bullish sentiment among investors, which could further bolster Bitcoin’s price in the short term.

Additionally, Bitcoin boasts high liquidity, reflected in its substantial market capitalization. This liquidity provides investors with ample opportunities to buy or sell Bitcoin without significantly impacting its price, adding to its attractiveness as a tradable asset.

Considering these factors collectively, it’s reasonable to predict that Bitcoin’s price is unlikely to experience a significant drop after Monday. Instead, the current market conditions, characterized by strong price appreciation, outperformance against competitors, positive technical indicators, consistent trading patterns, and high liquidity, suggest that Bitcoin may continue its upward trajectory or at least maintain its current levels in the near term. 

Bitcoin’s recent decline from record highs is complex, driven by profit-taking, economic uncertainties, and market cycles. However, factors like institutional interest and the upcoming halving could fuel future growth amidst these fluctuations.

Where to Buy Bitcoin?

For individuals eager to enter the cryptocurrency market, Bitget emerges as a reliable platform. Offering low fees, a user-friendly interface, and a straightforward onboarding process, Bitget provides a convenient experience for both novice and seasoned traders. Whether you are an experienced investor or a newcomer, Bitget offers a streamlined avenue to buy and trade cryptocurrencies in the dynamic and rapidly evolving market.

Prasanna Peshkar
Article By

Prasanna Peshkar

Prasanna Peshkar is a seasoned writer and analyst specializing in cryptocurrency and blockchain technology. With a focus on delivering insightful commentary and analysis, Prasanna serves as a writer and analyst at CryptoTicker, assisting readers in navigating the complexities of the cryptocurrency market.

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