Bitcoin (BTC) has been on an upward trajectory recently, although its momentum has been slowly diminishing. This slowdown comes as numerous altcoins are hinting at potential breakouts. The cryptocurrency market has witnessed significant liquidations, with over $333 million of long positions being wiped out within the past 24 hours. Such developments suggest that Bitcoin might continue consolidating, potentially setting the stage for renewed bullish sentiment in the near future.
As the year 2024 approaches its end, substantial whale investors are increasingly betting on upward trends for Bitcoin. This optimism is further supported by the rise in Bitcoin’s open interest (OI), which has soared to a new all-time high of over $68 billion.
High Impact News Ahead
The cryptocurrency market is bracing itself for heightened volatility as Bitcoin is expected to lead the altcoin sector in the coming days. This anticipation is linked to the upcoming announcements from central banks in three major economies regarding their benchmark interest rates. Today, the Federal Reserve is scheduled to release its final FOMC data for 2024. Analysts are predicting a 25 basis point reduction, bringing the rate down to 4.50 percent, in response to cooling inflation.
On Thursday, the Bank of Japan (BoJ) will evaluate its monetary policies, including its benchmark interest rate, which is anticipated to remain steady at 0.25 percent. Similarly, the Bank of England (BoE) is expected to maintain its lending rate at 4.75 percent when it releases its data later the same day.
What Lies Ahead for Bitcoin?
According to renowned crypto analyst Ali Martinez, Bitcoin traders and investors should prepare for a more turbulent phase as the cryptocurrency enters the parabolic stage of the bull market. Martinez draws parallels between the anticipated Bitcoin surge in 2024/2025 and the rallies seen in 2017 and 2020/2021, albeit with a more pronounced bullish outlook.
In this scenario, the analyst forecasts that Bitcoin’s price will undergo a minor correction upon reaching $110,000, followed by a more significant pullback at $125,000, and a substantial correction at $150,000. Ultimately, the bull market is expected to culminate when Bitcoin hits $220,000, anticipated to occur later in 2025.
As the cryptocurrency landscape continues to evolve, staying informed about market trends and upcoming economic announcements is crucial for investors and traders. The interplay between Bitcoin’s price movements and macroeconomic factors will undoubtedly shape the market’s trajectory in the coming months.
