Bitcoin’s price has risen sharply since the US Federal Reserve cut interest rates by 50 basis points. However, some experts believe this rally might not last and a price drop could be coming. Crypto analyst CrediBULL Crypto predicts that Bitcoin could fall to around $49,000 soon. In a recent post, CrediBULL Crypto said he expects Bitcoin to rise to about $70,000 before dropping back to “ideally under” $49,000, setting the stage for a potential breakout afterward.
The recent US Fed rate cut could trigger a Bitcoin price rally to $70,000. However, a crash might follow soon after, as CrediBULL Crypto has warned. Analyst Ali Martinez also suggested that Bitcoin could face downward pressure soon.
He noted that nearly $2 billion in Bitcoin futures contracts have been opened in the last three days, which could lead to a long squeeze. Additionally, CrediBULL mentioned a “Binance spot plunge production team,” claiming they are working to make the price drop happen.
Martinez also pointed out that Bitcoin is once again testing the 200-day simple moving average (SMA), a key level for confirming a bull run. He noted that in the past, Bitcoin has struggled to regain this support level, often resulting in “significant corrections.” A rejection at this point could indicate trouble for the leading cryptocurrency.
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Potential Election Impact on Bitcoin Prices
Crypto analyst Bonk Guy explained why a Bitcoin price crash might not happen. He noted that the market is just weeks away from the fourth quarter, which is typically the most bullish time for risk assets. Historically, Bitcoin tends to see the highest returns in Q4, with positive monthly performance in October, November, and December during the last two halving years.
He also highlighted that the US presidential election is 45 days away. In the past, Bitcoin has surged after elections due to the market gaining clarity. Some projections suggest BTC could hit $90,000 if Donald Trump wins.
Despite a preference for a Trump presidency within the crypto community, Bonk Guy mentioned that Bitcoin could rise regardless of the winner. He noted that Anthony Scaramucci is assisting Kamala Harris with crypto policies, which could be beneficial for Bitcoin.
Additionally, Bonk Guy pointed out that FTX customers are set to receive $16 billion in cash as repayments following the exchange’s collapse. This could be bullish for Bitcoin since these customers might invest some of their repayments into BTC. Unlike the past with Mt. Gox repayments, these users receiving cash means there won’t be significant selling pressure from them.
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