Weekly Bitcoin Forecast Out: Here’s the Levels and What’s Happening!

According to crypto analyst Akash Girimath, Bitcoin price appears to be facing a momentary drop in the short term, while it seems hesitant to consolidate in the longer term. The analyst states that on-chain metrics are showing an uncertain outlook and the accumulation that has started shows the potential for a prolonged decline. Also, the analyst says that regardless of the technical perspective, BTC adoption is going well. cryptocoin.com We have compiled Akash Girimath’s Bitcoin forecast and analysis for our readers.

BTC remains a strong speculative asset

US investment bank Morgan Stanley has revealed that it has increased its exposure to BTC by buying more shares of the Grayscale Bitcoin Trust (GBTC). As of September 30, Morgan Stanely added 592,498 GBTC shares to its holdings, up 63.8% to 1.52 million shares, according to filings with the United States Securities and Exchange Commission (SEC). According to the analyst, as Bitcoin’s popularity grows, more companies will want to take advantage of it, especially given the expansion in the US dollar.

On a similar note, Kazakhstan is considering switching to nuclear power sources to mine BTC due to power shortages. The country’s Ministry of Energy announced that it saw an 8% increase in domestic electricity consumption in 2021 due to Bitcoin miners. This spike in electricity consumption came after China banned digital currency mining in 2021. This development has led to widespread migration of BTC miners to regulation-friendly countries such as Kazakhstan. The analyst makes the following assessment:

This increase in energy consumption also implies that Bitcoin mining is profitable and sought after by large institutions, charting the adoption and demand for the leading crypto.

Meanwhile, Indian exchanges saw the BTC price drop by 9% to 15% as the Lok Sabha passed a bill calling for a ban on certain private cryptocurrency transactions. While this has caused FUD among local users, some point out that this is the same bill that was drafted in January. Regardless, the bill will be discussed in the winter session, which runs from November to December. According to the analyst, while the sudden drop was only seen in Indian stock markets, it presented a good opportunity for arbitrage as traders buy BTC from Indian stock markets and sell abroad.

“Bitcoin is struggling to surpass the $58,200 to $61,545 demand zone”

Crypto analyst Akash Girimath states that since last Friday, Bitcoin price has managed to break past the $59,422 resistance level twice, but failed to retest the psychological $60,000 level. According to the analyst, this development shows that scenario 1 is still in effect and BTC is struggling to surpass the $58,200 and $61,545 demand zone. For Bitcoin prediction, Akash Girimath does the following analysis:

Assuming buyers manage to hit a daily close above $61,545, it will show a continuation for higher prices. In such a case, BTC could target the next level stretching from $63,500 to $65,571. A one-day close above this zone would invalidate the bearish outlook and trigger the start of a new bull rally that could propel BTC to the 161.8% Fibonacci extension level at the all-time high at $77,908.

The analyst says that while the above scenario sounds like ‘all rainbows and unicorns’, certain on-chain metrics show it’s possible. As an example, the analyst cites the decline in Bitcoin foreign exchange reserve measurements between dots and futures. Akash Girimath notes that this trend was observed in July 2021, which marks the end of the bear market, and there is also a liquidity crunch on the sell side, which indicates a bullish outlook.

The analyst emphasizes that the net flow chart of all exchanges shows that Bitcoin has seen big breakouts for three consecutive days, which indicates that investors are bullish.

Analyst expects Bitcoin to decline to $ 53,000, predicting

According to the analyst, a 4-hour chart reveals that a bull trend is possible for BTC, but the medium and long-term future of BTC remains undecided. Akash Girimath continues his analysis for the Bitcoin forecast:

Monday’s low of $55,608 has swept twice over the course of this week, gaining 7.5% to $59,467. However, remaining liquidity above Monday’s high of $60,069 remained untouched. Investors can expect this short-term bearish to reverse and head towards “buy-stop” liquidity.

According to the analyst, the above scenario is cautiously optimistic and expects BTC to reverse its bullish momentum and drop to $53,000. The analyst states that the 365-day Market Value to Realized Value (MVRV) model is hovering around 23%, supporting this decline.

This on-chain metric is used to determine the average profit/loss of investors who bought BTC in the past year. The current level shows that the majority of investors are still in profit. According to the analyst, this could push the BTC price further down if investors decide to sell, allowing the MVRV indicator to drop to zero or even lower. Akash Girimath concludes his analysis as follows:

Therefore, market participants need to be aware of a potential sale. A daily close below $53,000 will invalidate the bullish argument and trigger a potential collapse to $50,000 or lower.

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