Due to concerns about the conflict between Israel and Hamas, management costs have skyrocketed, and Bitcoin prices have fallen below $27000.On Thursday, the largest cryptocurrency trading price was $26816, down 2
Due to concerns about the conflict between Israel and Hamas, management costs have skyrocketed, and Bitcoin prices have fallen below $27000.
On Thursday, the largest cryptocurrency trading price was $26816, down 2.2% in the past 24 hours. The pessimistic market outlook is not unique to BTC, considering that Ethereum fell 0.5% to $1560, while XRP fell 2.1% to $0.4838.
Prediction of Bitcoin Price after Whale's Increase in USDT Holdings
After breaking through $28000 last week, Bitcoin prices have successfully remained above $27000. Investors and analysts had previously expected that this support level could be maintained, allowing BTC to chart another path towards a recovery of $30000.
However, due to concerns about a recession in the US economy, geopolitical tensions related to the war between Israel and Hamas are gradually changing the outlook.
Nevertheless, the impact of the war is not expected to trigger a sell-off in the cryptocurrency market, especially in Bitcoin, where renowned hedge fund manager Paul Tudor Jones stated that he likes Bitcoin and gold at this time.
If the United States falls into recession, there is a high possibility that Bitcoin will rise. Investors hope to use Bitcoin to hedge against traditional assets and currencies such as the US dollar, thereby creating the necessary momentum for a rebound.
Meanwhile, leading blockchain analysis company Santiment reported a surge in active addresses related to the largest stable currency, Tether (USDT). This has also led to an increase in exchange deposits mainly between $1 million and $10 million in USDT wallets.
The significant increase in USDT balance on the exchange indicates interest in future purchases, which means that investors are accumulating willingness to purchase BTC in the future.
Another blockchain data analysis platform, IntoTheBlock, revealed that "compared to traditional financial markets, Bitcoin currently has the highest Sotino ratio. In other words, compared to other mainstream assets, Bitcoin stands out with a "more favorable risk adjusted return".
How much can Bitcoin prices fall?
The relative strength index (RSI) has strengthened the bearish outlook, and Bitcoin may retest its support level of $26000. Breaking through this buyer crowding state may trigger a larger sell-off, falling to $25000 and potentially expanding to $23500.
Some analysts such as RektCapital believe that Bitcoin prices have not yet bottomed out before the long awaited halving event in 2024. His recent technical updates indicate that liquidity is likely to exceed $22000 and $20000 before BTC falls to halve in 2024. A bull market.
Immediate recovery to over $27000 may help curb the current bearish situation and enhance confidence in a recovery to $30000.
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