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Bitcoin is at $35k+ as this article is being drafted. While the community is optimistic about the future, it is interesting to observe that the highest value ever recorded was $68,000. So, the current value is nowhere near that; however, BTC’s rebound from the $20,000 mark where it resided in June 2022 keeps it afloat on the market. This was nothing short of a collapse, leaving token holders uncertain about whether to retain their tokens or incur losses.
Several factors contributed to this decline, including an increase in interest rates, inflation, the approval of ETFs, and the conflict in Ukraine. Adding to this is the recent incident with Israel defending its territory and people from terrorism. Together, they influence the movement of BTC prices on the graph. There are indications that institutional investors have increased their Bitcoin purchasing activity. Indicating that the digital asset may experience another increase, particularly over the long term.
Analyzing Bitcoin and its price movement
Specifically speaking, BTC is trading at $35,353.97, an increase of 2.71% in the last 24 hours. This simultaneously marks a jump of approximately 2% in the last 7 days. Thirty days have been crucial, for there is a rise of nearly 27.97%.
The price movement of BTC on a graph can be understood by several factors, which have been categorized in the below manner.
Technical analysis
The Relative Strength Index of Bitcoin indicates that the token has been oversold. It indicates that crypto enthusiasts are extremely optimistic regarding the future value of the token. The aggressive sale of any digital asset, regardless of its current performance, suggests that a rebound is possible. Moving Average Convergence Divergence (MACD), an abbreviation for Moving Average Convergence Divergence, reflects a similar sentiment.
The 24-hour volume of Bitcoin is up 61.35%, and the market capitalization is up 2.34%. The majority of BTC community members are optimistic about its upward movement. ETH, the subsequent dominant cryptocurrency, has also reached the $1,800 safety threshold. It was last observed being traded at $1,840.22, an increase of 1.91% over the previous 24 hours.
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Sticking to Bitcoin, the token is indeed doing the best job of leaving the crypto winter as far behind as possible. Bitcoin prediction estimates it could return to the all-time high milestone by the end of 2024, against the original estimate of 2023. It is still possible that it will conclude the year above $30k, which would be sufficient to provide its holders with peace.
Fundamental analysis
Bitcoin’s fundamental analysis entails recognizing that its global adoption is increasing despite all odds, as is its emphasis on network security. Given that a greater number of portfolio builders are seeking to diversify their holdings through new investment opportunities, the latter is a fairly evident course of action.
Adoption and network security remain strong for Bitcoin, and CryptoNewsZ believes that the token will only rise from this point. Volatility will undoubtedly play a pivotal role, and BTC enthusiasts must take all necessary precautions.
The conflict in Ukraine has created uncertainty about the future of the global economy. The current Israeli-Hamas conflict has exacerbated the situation. Both wars have no definite end date; consequently, the global economy can only construct a safety net while praying for everyone’s improvement.
Institutional analysis
An important development in the BTC ecosystem is the incorporation of institutional investors. This includes the likes of hedge funds and pension funds. Institutional investors have increased their token purchases to their maximum capacity. This rate and volume of investment is another reason why CryptoNewsZ believes Bitcoin has left the bearish tide behind.
To reiterate, price estimates for Bitcoin are optimistic, but experts have advised taking precautions since volatility can pitch in at any time.
Counter arguments
There is a possibility that all the factors will increase their attack on Bitcoin and the crypto community for a while. For instance, the Federal Reserve Bank may hike interest rates at their next meeting. Inflation is already at its highest in the last 40 years, forcing people to save money instead of investing it in riskier financial products.
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The Reserve Bank has indicated that there will be no further improvement. Still, it is preferable to wait for the conclusion and the final report before taking a call. Spot Bitcoin ETF approval is anticipated during the first half of January 2024. That would provide a more structured method of Bitcoin investment. One method is to accumulate tokens based on individual capacity and observe the results.
Conclusion
Bitcoin’s price outlook in the short term is estimated to stay above $30,000—give or take $2,000 as a safety net. Institutional investors are getting on board to strengthen the adoption of the token and instill a sense of confidence among those who are holding the crypto for the long term. Inflation, interest rates, and ongoing conflicts are a few variables that could affect the price.
