Key Points
- Bitcoin (BTC) is set to end the month of April 2024 in a bearish trend, with the price dipping below $63K.
- As Bitcoin struggles, Ether is gaining, hinting at a potential altseason on the horizon.
As we approach the end of April 2024, Bitcoin’s price has taken a bearish turn, dipping below the $63K mark. This comes after four consecutive weeks of correction. With less than 48 hours left until May, it seems likely that this choppy trend will continue.
Many crypto traders have opted to remain on the sidelines in anticipation of impactful news from the United States. In particular, the market awaits data on interest rates and the FOMC statement from the United States Federal Reserve, due on Wednesday.
Uncertainty in the Crypto Market
The release of this data is expected to increase volatility in the crypto market. It remains unclear when the Federal Reserve will implement its anticipated rate cuts later this year.
Last month, Bitcoin reached an all-time high of around $74K. Since then, it has been in a state of correction. According to experienced trader Peter Brandt, Bitcoin’s upward rally has been characterized by an exponential decay, suggesting diminishing returns.
Brandt’s analysis of historical data indicates that Bitcoin may have already reached its cycle top, just above $70,000. However, he also noted that there’s only a 25% chance of this exponential decay being successful. A multitude of other factors can impact Bitcoin’s price, including the ongoing mainstream adoption of digital assets and web3 protocols.
Future Predictions
Despite the current trend, Brandt believes there’s a high chance of Bitcoin rallying beyond $100K in the coming months. This sentiment is echoed by popular Bitcoin trader and investor Giovanni Santostasi, who predicts that Bitcoin could reach as high as $210K by the end of 2025 before dropping to around $83K.
As Bitcoin’s price continues to decline, short-term investors are diversifying into the altcoin industry. The ETH/BTC pair, a popular indicator of the macro crypto cash ratio, has signaled a potential altseason. The pair has rebounded over 4% in the past week, hovering around 0.0507 on Monday.
However, crypto analyst Benjamin Cowen has warned investors to be wary of a potential crash for altcoins in the coming months before a rebound. This serves as a reminder of the volatility and unpredictability inherent in the crypto market.
