Analysts speculate further trouble for the Bitcoin bull run, suggesting it could plunge to unseen lows despite recent market optimism. Metrics such as the Volume Weighted Average Price (VWAP) and Volume Profile Visible Range (VPVR) indicate potential downside.
BTC’s remarkable 2023 performance, surging to $30,000 earlier this year, was followed by a dip to a multi-month low of $25,300 in August. Analysts warn that the asset’s challenges may not be over yet.
Jake Wujastyk points out BTC’s November 2022 VWAP zone, raising concerns about potential negative scenarios. The VPVR metric is even more ominous, indicating a potential drop to $12,500, according to another analyst who deems VPVR “very reliable” in certain circumstances.
Bitcoin’s Bull Cycle Continues — Promising Metrics Indicate Uptrend
In August, the creator of LookIntoBitcoin shared encouraging news about Bitcoin’s Realized Cap HODL Waves (RHODL). This metric, assessing a longer-term view of the ongoing bull market, reflects positive trends observed during previous bull markets.
RHODL considers when coins last moved and weighs them based on realized price. Rising bands of coins last moved three to six months ago suggest the start of a new bull cycle, a pattern consistent with previous bullish phases.
BTC’s Future Amid FED’s Interest Rate Policies
Bitcoin’s recent bearish sentiment is attributed to the U.S. Federal Reserve’s high-interest rate policy. The FED’s stance on rates has led to subdued Bitcoin upside potential. Analysts predict limited BTC recovery unless interest rates drop, possibly prompted by treasury bond dumping.
Bitcoin’s Price Potential and Market Sentiment
While Bitcoin may have recently been oversold, its profitability decreased, as indicated by Glassnode data. The percentage of addresses in profit is at 61.47%, leaving room for further decline. Decreased confidence is seen in the falling exchange balance, while low whale demand suggests limited recovery.
Addresses holding around 10,000 BTC showed accumulation before the crash, hinting at the potential upside. Market dynamics, including interest rate-related announcements, remain pivotal in influencing the Bitcoin bull run.
