Bitcoin still seems ready to give us a financial roller coaster ride. So, what does 2024 have in store for us? Matrixport, a company expert in crypto investment products, has opened Pandora’s box with its predictions. Hang in there, the year promises to be full of twists and turns!
1. Bitcoin, a phoenix in January and an icarus in March
Matrixport tells us that bitcoin, like a phoenix, will rise from its ashes in January 2024, with a promising increase of +17%. Imagine, a jump from $42,265 to $49,450!
But be careful, like Icarus approaching too close to the sun, this ascent would be short-lived. In March, bitcoin could plummet to $36,350, losing -14% of its value. A fake rally to be taken seriously!
2. Trading signals: When prudence is the mother of wisdom
Trading signals Matrixport suggest near-term weakness. The first bearish alert since August 2023 predicts a drop of -7% in the next two weeks.
It’s a bit as if Bitcoin were telling us: “Don’t get carried away too quickly! » Trend breaks might not be followed by a rush of buying, and prices might turn around as quickly as a startled cat.
3. A covered market, but not serene
The market consensus, with implied volatility at 100%, is eagerly awaiting the approval of Bitcoin ETFs by the SEC. This decision could cause price fluctuations of +/- 7.8%.
It’s a bit like waiting for the lottery results, but with billions at stake! According to expectations, Bitcoin could range between $40,600 and $47,400 by the end of the week. Suspense!
4. The financing rate, a key indicator
2023 saw the Bitcoin funding rate explode up to +66%, revealing a massive accumulation of long positions in leveraged futures products. Imagine traders in “Vegas” mode, betting big on red (or should I say, on Bitcoin).
But be careful, Matrixport warns us: such a frenzy is unsustainable. Are we on the verge of a brutal adjustment?
5. Bitcoin: a technical vulnerability to watch out for
Even if a Bitcoin Spot ETF were given the green light, investors could decide to take profits, thereby limiting the downside.
However, Bitcoin seems to want to play cat and mouse with the resistance levels, especially the area between $36,000 and $38,000, which could be revisited. It’s a bit like watching a tightrope walker on a tightrope: fascinating, but risky.
While 2024 promises to be full of challenges and surprises for bitcoin, one thing remains certain: its capacity to amaze us. Between forecasts of rise and fall, bitcoin continues to fascinate and divide. One thing is certain, for investors and crypto enthusiasts, the year 2024 will be anything but boring. Stay tuned, the best (or worst) may be yet to come! Approval of a Bitcoin ETF will only be the beginning.
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