Why Bitcoin’s Crash Is Likely to Turn Around
Bitcoin is way down today but may be able to rally this week thanks to a few positive factors that will keep it for dropping too low.
Quick overview
- Bitcoin (BTC) fell to $109,237 but has since recovered above $110K, indicating potential for a rally.
- The stock market's positive performance is expected to influence Bitcoin's price recovery in the coming days.
- Ethereum's recent success may overshadow Bitcoin, especially with the approval of the GENIUS Act enhancing stablecoin legitimacy.
- Investors may see a short rally to $115K, but challenges remain for Bitcoin to reach its previous high of $120K.
Live BTC/USD Chart
Bitcoin (BTC) fell to $109,237 (BTC/USD) on Tuesday but is now back above $110K as it dips to dangerous levels, but we could see a rally soon for the token.
Bitcoin is at one of its lowest points in nearly two months, but that could be good news for those who are looking to invest in the dip. There are strong indications that BTC’s price will be much higher in the next few days as the coin recovers.
BTC/USDOne of the strongest positive factors for Bitcoin right now is the stock market’s performance. Bitcoin often moves in conjunction with the stock market, but not completely. It can often outpace the stock indices or fall while they are climbing, but there are usually some parallels between the two. Right now, the stock market is high after playing on Fed Chairman Jerome Powell’s comments on Friday.
Since the stock market is up right now, we expect Bitcoin to follow suit shortly. The coin is also being helped along by positive government sentiment and support The GENIUS Act that was approved by the U.S. government recently makes stablecoins more legitimate and opens the door for greater accessibility of the cryptocurrency market.
What Kind of Turnaround Should Investors Expect?
There is little doubt that Bitcoin will surge again in the near future, but how long will investors have to wait on that and how high will Bitcoin likely go? We are seeing a dangerously low level for Bitcoin right now, with Ethereum (ETH) performing better over the last week. Ethereum could steal some of Bitcoin’s spotlight for a little white, particularly with Ethereum spot ETFs doing so well at the moment.
There is a shift toward Ethereum, and we saw that in a big way when Ethereum led a crypto market surge after the GENIUS Act became low while Bitcoin remained relatively stable. The broad market interest simply is not there for Bitcoin at the moment, so it may have trouble getting back to its previous level around $120K. We are far more likely to see a short rally to $115K and then a further struggle to get back up to a new high.
There are a number of whales invested in Bitcoin at the moment, and they may not allow BTC to drop below $100K. If they can help keep BTC afloat during this rough period, the coin could set a new support level above $110K and make its way slowly back up to a record high.
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