As Bitcoin (BTC) markets continue to fluctuate, renowned economist Alex Krüger has revealed five important factors that should give investors hope. According to Krüger’s analysis, it is possible that Bitcoin will start to rise again towards the end of the year.
Bitcoin Breaks Psychological Support Point
As we reported as Kriptokoin.com, Bitcoin has recently fallen below the psychological support point at the $ 60,000 level. Bitcoin has recently fallen below the psychological support point at the $ 60,000 level. This is due to factors such as the German government’s selling pressure and Mt. Gox payments, which has caused concern in the market. Krüger stated that these factors will keep the crypto markets unsettled for a few months, but will end after a certain period of time.
According to Krüger, there has been a lot of activity from Mt. Gox creditors and the German government may affect the markets in the short term. However, he states that this selling pressure is limited and that five main catalysts could trigger the rise in Bitcoin towards the end of the year.
Five Catalysts Towards the End of the Year
Alex Krüger lists five key factors that he thinks could see Bitcoin rise towards the end of the year. First, there is the prospect of an economic soft landing. This could help the markets to recover steadily. Secondly, the US Federal Reserve (Fed) is expected to begin a cycle of interest rate cuts. This could create a favorable environment for cryptocurrencies.
As a third factor, Krüger foresees the re-emergence of the crypto-macro correlation. Uncertainties about Germany and Mt. Gox, Bitcoin and other cryptocurrencies may move more in line with macroeconomic developments. Fourth, with Donald Trump’s victory, a more favorable regulatory outlook for cryptocurrency markets could emerge.
Market Impact of FTX Creditors
Finally, FTX creditors are expected to receive a payment of around $14-16 billion in the last quarter of the year. These payments could provide a serious boost to Bitcoin and other cryptocurrencies if creditors reinvest their funds in crypto markets. Krüger states that FTX creditors can consider these payments as a great opportunity.
Krüger predicts that these developments will create a positive environment for Bitcoin and that the price will consolidate at the $ 50,000 level for a while. From a technical analysis perspective, it seems likely that Bitcoin will trade around $50,000 for a while and fill this area. Downside risks include the $52,000 level and the extreme Mt. Gox-induced selling pressure in the $48,000-$49,000 range. However, Krüger notes that the $40,000 level is a low probability.
Bitcoin Technical Analysis and Future Prospects
Stating that the 200-day moving average (DMA) is at $ 58,500 on the upside, Krüger thinks that Bitcoin’s bounce back to the 200 DMA is the most likely scenario. He predicts that aggressive sellers will re-engage at this level.
As of now, Bitcoin is trading at $55,282, down more than 4% on the day. However, according to Krüger’s analysis, an uptrend in Bitcoin can be expected again, driven by the five catalysts mentioned above. Alex Krüger’s analysis offers a promising perspective for Bitcoin and the cryptocurrency markets. Traders can shape their strategies by considering these five factors.
Follow us on Twitter, Facebook and Instagram, and join our Telegram and YouTube channelto stay up to date with breaking news !
