Key Takeaways
- Bitcoin trades above $109,000, having gained 1% in the last 24 hours.
- Standard Chartered analysts predict Bitcoin may dip below $100,000 before rebounding.
Standard Chartered Analysts Forecast Potential Bitcoin Dip Below $100,000
Bitcoin’s volatility has surged this month, plummeting to $102,000 just days after hitting an all-time high of $126,000. The cryptocurrency has struggled to recover since a liquidation event on October 10.
Geoffrey Kendrick, head of digital asset research at Standard Chartered, warned investors on Wednesday that Bitcoin could briefly dip below the $100,000 mark by the weekend. He indicated that while this decline appears inevitable, it is expected to be a temporary setback. Kendrick noted in his latest analysis:
The real question is how low Bitcoin will go before finding support.
Kendrick suggested this could be the final opportunity for Bitcoin to fall below the $100,000 threshold. He elaborated that the recent peak recorded on October 6 aligned with short-term price targets but failed to sustain momentum due to growing macroeconomic concerns stemming from escalating trade tensions between the U.S. and China.
Analysts have highlighted three key factors that could drive Bitcoin’s price up in the short term. One notable influence was a significant sell-off in gold earlier this week, suggesting a potential shift of funds from precious metals to riskier assets like cryptocurrencies.
The second component is monetary policy, with indications that the Federal Reserve may consider another interest rate cut, potentially igniting a new Bitcoin rally. Kendrick remains optimistic, speculating that Bitcoin could reach $200,000 despite the current market conditions.
BTC Eyes $114,000 as Market Conditions Improve
The four-hour chart of the BTC/USD pair remains bearish, although Bitcoin added 1% to its value in the past 24 hours. At the time of writing, BTC is trading around $109,650 and could see short-term gains.
The relative strength index (RSI) at 51 indicates that bullish sentiment is gaining control, with MACD lines also sitting in positive territory.
If the upward trend continues, BTC could approach the weekly high of $113,964 in the coming hours. A sustained bullish run may see it surpass the key level at $116,000. However, should bearish trends persist, Bitcoin risks dropping below the weekend low of $105,000.
