Analysts say that Bitcoin is going through a significant drop and that the trend shows that the drop could last for almost two more months before a possible bullish rebound.
There was a sudden change in monetary policy by the Bank of Japan on August 5 that caused Bitcoin’s price to drop below $50,000.
When the Bank of Japan raised its interest rate from 0% to 0.25%, it had an instant effect on markets around the world. It changed the values of both U.S. stock indices and cryptocurrencies. Traders had to act quickly when interest rates went up on Japanese yen loans they had taken out at low rates to invest in U.S. assets.
Analysts Weigh Bitcoin’s Future
An important $510 billion has been lost in the overall value of the cryptocurrency market because of Japan’s new policy. This is the most significant decrease in three days in over a year.
Even though the market is mostly negative, some experts are cautiously optimistic about a possible turnaround. Rekt Capital, a well-known expert, said that the way prices have moved in the past suggests that the current downward trend could last for another two months. But this time of falling prices could prepare the market for a future rise in a positive direction.
Another well-known expert, Satoshi Flipper, pointed out a new bullish chart pattern called the bull flag. This trend often shows that a rally might be coming up. Flipper’s findings, which were shared in a post on August 4, suggest that Bitcoin’s price could go up a lot if the pattern comes true.
Elja, a crypto analyst, has also seen what might be a bull flag forming on the monthly chart. This could add to the bullish view.
Alex Kuptsikevich, a senior market expert at FXPro, on the other hand, says that Bitcoin’s price could drop as low as $42,000 in the near future because of the unstable market.
As traders and buyers try to make sense of these rough seas, the next few months will be very important in figuring out if Bitcoin can get back on its feet and take advantage of the new signs that it is going up.
