Following a short-lived surge close to $70,000, fueled by the positive outlook following former U.S. President Donald Trump's recent speech and his candidacy, Bitcoin (BTC) has since fallen back below $65,000, while artificial intelligence (AI) models are showing signs of caution.
This decline began after reports emerged that the U.S. government had moved nearly 30,000 BTC, valued at about $2.02 billion at the time, from the cryptocurrency accounts linked to the Department of Justice's takedown of the Silk Road, as detailed by Arkham Intelligence
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Surprisingly, this development occurred just days after Trump expressed his willingness to reduce the sentence of the founder of Silk Road, Ross Ulbricht, and to retain all Bitcoin held by the U.S. government, including any future acquisitions, should he win the election, during his speech at the Bitcoin 2024 conference last weekend.
Based on this situation, the sophisticated AI algorithm used by the crypto analysis firm PricePredictions is projecting a negative outlook for Bitcoin's future, setting its price on August 31, 2024, at $61,782.51, according to the data collected on August 1.
Indeed, if the AI's prediction, which relies on technical analysis (TA) indicators such as average true range (ATR), Bollinger Bands (BB), moving average convergence divergence (MACD), and others, materializes, it would signify a drop of 4.02% from the current Bitcoin price.
It's also important to mention that crypto trading expert Ali Martinez highlighted that leading traders on Binance, one of the world's largest crypto exchanges, were taking advantage of the market's downturn, with nearly 70% of them betting on Bitcoin's recovery, as he shared his insights on August 1.
