Originally published on: October 10, 2024
Bitcoin’s price is on the edge of a major drop, signaling a potential shift to long-term lows before the bull market fully takes over.
According to analyst Cole Garner’s latest analysis, Bitcoin markets are facing a looming “capitulation,” with liquidity risks posing a threat to the current price of BTC, which stands at $60,835.36.
Garner’s investigation into on-chain data reveals a tightening of liquidity in the short term, indicating a possible downward trend in BTC price performance.
The decline in liquidity starts at the central banks, as depicted in Garner’s Liquid Vision index, which is flashing a potential buy signal. Recent policy actions by central banks in China and the U.S. have also contributed to the liquidity risks in the market.
With dwindling supplies of stablecoins like Tether (USDT) and USD Coin (USDC), Garner predicts that Bitcoin could test range lows below $50,000 before making a significant recovery.
Despite the current market conditions, there is optimism among some traders that Bitcoin could see a turnaround before the end of October. The potential influx of capital from China’s stimulus measures could spark renewed interest in cryptocurrencies.
Looking ahead, bullish predictions for Bitcoin’s price remain strong, with traders like Peter Brandt forecasting a potential surge to $135,000 in the next year. However, crucial support levels need to hold for this optimistic scenario to materialize.
As Bitcoin hovers around $61,000, down 4% month-to-date, investors are advised to conduct their own research and exercise caution when making investment decisions in this volatile market.
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