Bitcoin (BTC) Price Rally: $65,000 or $50,000 Next?

Bitcoin (BTC) is currently finding a balance close to $60,000 after experiencing short-term fluctuations that led to a price decline to $53,761

Bitcoin (BTC) price experienced short-term fluctuations on March 15, leading to a price decline to $53,761. However, the coin recovered and was trading at $58,541 at the last check. This recent uptick raised discussions among analysts on whether a rise to $65,000 or a fall to $50,000 is next for the apex crypto.

Bitcoin price rose 1.5% in the last 24 hours, as revealed in data from MarketCap. At the time of writing, BTC was changing hands at $58,541. The coin’s market capitalization increased by 1.6% to reach $1.1 trillion, while the trading volume fell by 17% to reach $27 billion.

The latest price rally had a ripple effect across the market. Among the top cryptocurrencies, Binance coin (BNB) and XRP prices jumped 1.3% and 1.1%, respectively, within 24 hours.

Markus Thielen, founder of 10x Research, disclosed in a report that while the rally will be short, BTC could rise to $60,000. Thielen arrived at his prediction after conducting Bitcoin’s technical analysis, which showed a price range of between $55,000 and $56,000 forming a base. Given the medium-term technical damage, the founder foresees only a short-term tactical bullish countertrend rally. He added that Bitcoin could fall to a lower range at $50,000 after climbing towards $60,000.

Vetle Lunde, a senior analyst at K33 Research, added to the projection, stating that seasonal trends have contributed to BTC’s bleak outlook. According to Lunde, the third quarter of 2024 has offered the lowest return for the digital asset. Lunde raised other issues including the ongoing distribution of Bitcoin by trustees of the now-defunct Mt.Gox exchange and the large token sell-off by German authorities.

As mentioned in our previous brief, the German government sold 282.74 BTC to the Bistamp exchange. Before this transaction, the government sold Bitcoin worth $55 million to Coinbase and Kraken exchanges as highlighted in our previous update. Note that these BTC were those seized from illegal activities. A government spokesperson said the government doesn’t hold onto cryptocurrency and sells them for euros upon conclusion of a related case.

As summarized in our earlier story, Mt.Gox transferred 137,890 BTC from its wallet to repay its creditors about $9.4 billion. This movement has increased the amount of BTC in circulation, leading to price declines for the cryptocurrency.

Timeline for Bitcoin’s Absorption of Increasing Supply

K33 Research estimated that it will take the market the whole of Summer to absorb 75,000 BTC ($4.3 billion) of sales from Saxony and 118,000 BTC ($6.8 billion) of sales from Mt.Gox customers.

“We expect these flows to burden performance in the months to come and the choppy market conditions to last until October,” Lunde noted.

On the contrary, Skybridge’s Anthony Scaramucci has predicted a $100,000 price target for Bitcoin by the end of 2024. Investors should note that this prediction is not cast in stone as the crypto market is known to be volatile.

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