The cryptocurrency market surrendered to selling waves after Bitcoin lost critical support. The leading crypto dropped to $56,000 after losing $60,000. Moreover, this may be just the beginning. According to Standard Chartered, those bottoms are now on the table, as the Bitcoin price has fallen below $60,000! Therefore, more pain awaits investors.
The path to the 50-52 thousand dollar range is open for Bitcoin!
cryptokoin.comAs you follow from , the market has turned into heavy shades of red. Market players were especially surprised by the sharp decline of Bitcoin. Moreover, experts warn that this will continue. Geoffrey Kendrick, head of forex and digital assets research at Standard Chartered Bank, says:
BTC’s fall below 60 thousand dollars reopened the path to the 50-52 thousand dollar range. The driving force appears to be a combination of crypto-specific and broader macros.
It is necessary to consider the risk of liquidation!
Geoffrey Kendrick says crypto-specific concerns include five consecutive days of outflows from US spot Bitcoin exchange-traded funds and the weak response to the recent launch of spot Bitcoin and Ethereum ETFs in Hong Kong.
According to Kendrick, there is a risk of liquidation as US spot Bitcoin ETFs have experienced consecutive outflows and the average ETF purchase price is currently below $58,000. “More than half of spot ETF positions are underwater,” the analyst said. For this reason, some need to consider the risk of liquidation,” he says. Regarding Hong Kong spot ETFs, their volumes were low, according to Kendrick. This contributed to the recent Bitcoin price drop.
Wait for these levels and this event to buy Bitcoin!
Beyond crypto-specific issues, Geoffrey Kendrick points out broader macroeconomic trends. He says that these also put pressure on Bitcoin’s price dynamics. In particular, the analyst notes that liquidity measures in the US have deteriorated rapidly since mid-April. Kendrick adds that assets such as crypto, which generally thrive on liquidity, are feeling the impact of these tightening conditions. In this context, the analyst gives the following advice:
Of course, liquidity is important when it matters, but in an environment of strong US inflation data and a diminishing likelihood of a Fed rate cut, it is even more important now. Re-enter BTC in the $50-52k range or if the US CPI on the 15th is friendly.
Standard Chartered maintains BTC price targets for 2024 and 2025
Last month, Standard Chartered raised its end-2024 BTC price forecast target to $150,000 from its previous estimate of $100,000. If strong inflows into spot Bitcoin ETFs continue and/or forex reserve managers start buying BTC this year, the price could even reach $250,000 at some point in 2025, the bank said.
Kendrick continues to maintain these BTC price prediction targets for 2024 and 2025. “It’s likely to take some time now,” the analyst said. “But I think a sharp rally is possible from September to the end of the year as we get closer to Trump’s election victory,” he says.
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