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The bitcoin market is dealing with mixed predictions, driven by both technical analysis and external factors such as geopolitics. The political turmoil has affected bitcoin” target=”_blank” rel=”nofollow”>bitcoin before. When tensions rise, cryptocurrency prices fall, unlike gold, market analysts say.
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bitcoin plummeted to around $59,000 as the Middle East crisis worsened, and then recovered somewhat, but continued volatility is likely on the cards. Despite this uncertainty, the latest version of CoinCodex crypto/bitcoin/price-prediction/” target=”_blank” rel=”nofollow”>btc price prediction offers a massive 40% gain in the price of the crypto asset, which could reach a high of $86,428 in November 2024.
Market expert Ali Martínez notes that bitcoin is moving in a descending parallel channel, a pattern generally associated with price declines. bitcoin's technical setup says it could fall to $52,000, adding to the uncertainty. Although CoinCodex predicts a bullish rise, the future of btc is uncertain.
<blockquote class="twitter-tweet”>
twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin It could fall to $52,000 if the ruling pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB
– Ali (@ali_charts) twitter.com/ali_charts/status/1841625964222283916?ref_src=twsrc%5Etfw” rel=”nofollow”>October 2, 2024
Impact of market sentiment on bitcoin
bitcoin price momentum would depend on market sentiment. According bitcoin-Price-and-LongShort-Ratio-Analysis-The-Impact-of-Market-Sentiment?utm_source=twitter&utm_medium=sns&utm_campaign=quicktake&utm_content=datascope” target=”_blank” rel=”nofollow”>CryptoQuantum
However, excessive optimism in the markets causes prices to correct downwards. On the other hand, too many short positions also hint at bearish sentiments, but in the extreme, they can be a precursor to a price rally.
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BTCUSD trading at $61,696 on the daily chart: TradingView.com
Currently, bitcoin sentiment remains neutral, with the Fear & Greed index at 41, reflecting caution in the market. This suggests that despite its stable performance with 60% green trading days over the past month, investors are still cautious.
Geopolitical factors
While geopolitical events influenced bitcoin's price movement in addition to technical analysis, its movements are varied. According to cryptocurrency analyst Jesse Colombo, the currency typically traded downhill during periods of rising global tensions. So far, there is a rally due to the Middle East crisis and its traders expect more of the same. This has the consequence of causing the alpha cryptocurrency to experience drastic changes in value mainly when tensions in different parts of the world continue to rise.
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The road ahead
bitcoin's future is by no means certain with these mixed signals. Ali Martínez has a bearish forecast, but based on this assessment in combination with CryptoQuant's market sentiment analysis, the price could well fall to $52,000. CoinCodex believes this will provide more reasons for optimism that btc can enjoy healthy growth in the coming months or years.
Featured image from Vecteezy, TradingView chart
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