Analyst Warns of ‘Shakeout’ Before the Bitcoin Bull Run 2024

Bitcoin (BTC), the largest cryptocurrency by market cap, seems to be bouncing back after hitting a monthly low of $55,500. Despite a 10% drop in recent days, the price has surged over 5% in the past three days, indicating a potential price reversal on the horizon.

In a series of X posts, VirtualBacon warns of a Bitcoin shakeout. He suggested Bitcoin may take one last plunge before a new bull run in a recent X post. VirtualBacon believes a bull run is still ahead despite market fears of a sharp plunge to the low $40,000s.

Is Another Bear Market Likely?

The market sentiment shows panic, but VirtualBacon stresses that a long-term bear market is unlikely. While lower highs and lower lows have marked Bitcoin’s recent price action, this trend doesn’t point to another prolonged downturn. The bigger picture involves the Federal Reserve’s upcoming rate cuts and liquidity injections, which should play a major role in fueling a bull market, possibly stretching into 2025.

Key Support Levels to Watch

Bitcoin’s 100-week EMA is emerging as a critical support level, sitting around $45,000. Historically, this level has marked the end of previous bear markets, such as in 2015 and 2019, where Bitcoin rebounded strongly after touching this point. According to technical indicators like Fibonacci retracements and high-volume nodes, the support range between $43,000 and $49,000 is strong. Even if Bitcoin briefly dips into this range, it’s more likely to bounce back than experience a sustained drop.

Green October Is Coming!

While many traders are eyeing the $50,000-$51,000 levels, VirtualBacon warns of the risk of cascading liquidations. If Bitcoin touches these levels, it could trigger a rapid drop to $44,000, causing early directional bets to fail. His advice is to stay patient and protect your portfolio through this volatility. September may be historically weak for Bitcoin, but October, November, and December have often seen the market turn bullish, providing optimism for a strong finish to the year.

He highlights that the upcoming FOMC meeting is key. Predictions of rate cuts starting in September are good news for Bitcoin. These rate cuts usually help assets like Bitcoin by increasing liquidity. With the recession potentially ending soon, Bitcoin could see a boost as the economy recovers.

A Bull Run Is On the Horizon

As fear dominates the market, VirtualBacon encourages investors to remain calm. The fear and greed index currently shows a high level of fear, but with the Fed set to turn on the “money printer,” sentiment could shift rapidly. His outlook is bullish, predicting that Bitcoin could break $100,000, with a potential target of $200,000 by the end of 2025. Mid to large-cap altcoins could see gains of 10x to 20x as a result of this surge.

Bitcoin is gearing up for its next major run, are you ready? 

Also Check Out: Top Reasons Why Bitcoin (BTC) Price is Up Today