Bitcoin prices have surged since the Federal Reserve cut interest rates by 50 basis points (bps). However, some predict that the flagship’s price surge may be short-lived and a price crash is imminent. Cryptocurrency analyst CrediBULL Crypto predicts that BTC prices may soon fall to as low as $49,000.
Bitcoin price could crash again
CrediBULL Crypto predicts in a post by X that BTC could soon fall below $49,000. Based on his analysis, he expects the flagship cryptocurrency to rise to a local high of $70,000 before experiencing another drop below $49,000 “ideally” before the actual breakout begins.
According to Coingape, the Fed’s rate cut is one of the factors that could trigger a rally in Bitcoin’s price to $70,000. However, as CrediBULL crypto warns, a price crash could ensue. Analyst Ali Martinez also recently suggested that the flagship cryptocurrency could soon face downward pressure.
He said that in the past three days, the opening volume of Bitcoin futures contracts has approached $2 billion, which may lead to long squeeze. At the same time, CrediBULL mentioned the "Binance Spot Crash Production Team", which he claimed came to realize the omen of the Bitcoin price crash.
Notably, Martinez revealed that BTC has once again tested the 200-day simple moving average (SMA). He noted that this is a key level to confirm a bull run. Historically, Bitcoin’s failure to reclaim this support level has led to “significant pullbacks.” The analyst added that a rejection could be a sign of trouble for the flagship cryptocurrency.
Why a price crash might not happen
Bonk Guy, a cryptocurrency analyst, outlined reasons why the price of Bitcoin may not crash. He mentioned that the market is only a few weeks away from the fourth quarter of the year, which is the most bullish season for risk assets.
Specifically, Bitcoin has the highest returns in the fourth quarter of each year. In addition, the flagship cryptocurrency has posted positive monthly returns in October, November, and December over the past two half-year periods.
The analyst further mentioned that there are 45 days left until the US presidential election. Historically, the price of Bitcoin has surged after past elections because the aftermath of the election brings certainty to the market. Some predict that if Donald Trump wins, the price of Bitcoin could reach $90,000.
Although the crypto community supports Trump for president, history shows that the flagship cryptocurrency could still rise regardless of who wins. In addition, Anthony Scaramucci revealed that he is helping Kamala Harris develop cryptocurrency policy, which is a positive for BTC.
Meanwhile, BONK Guy mentioned that FTX customers will receive $16 billion in cash as reimbursement after FTX’s collapse. This is good for the Bitcoin price as these users can allocate some of their funds to the flagship cryptocurrency. Receiving reimbursement in cash also means that BTC will not suffer from selling pressure from these customers as it did after the Mt. Gox reimbursement.
As of writing, the Bitcoin price is around $63,000, having fallen over the past 24 hours. Trading volume has also fallen during this period, with $26.46 billion traded.
