Will Bitcoin Ever Cross $31,000 Again?

Bitcoin holders were confident about price increase when the price reached $31,000. The investors remained confident even when the price struggled for a few days after hitting this price range. However, they started losing hope when the price kept struggling in a tight range for a few weeks. And now that around 8 weeks have passed, most investors have become doubtful about whether Bitcoin will ever cross $31,000 again or not.

Last week’s news about the US Debt Default ceiling rebuilt the investor’s confidence but it didn’t last long. The following Bitcoin news may highlight some important aspects of Bitcoin price movement over the coming weeks.

Bitcoin Price Prediction by JPMorgan

Bitcoin’s next halving event will take place in April 2024 and the recent report of JPMorgan shows that the retail demand will potentially remain strong till that time. Currently, the BRC-20 tokens and Bitcoin Ordinals are playing a vital role in boosting retail demand. However, the major reason why more retail investors are investing in Bitcoin is that the halving event is approaching soon.

The rewards for Bitcoin mining will reduce by 50% after this event. So, the cost to mine one Bitcoin will ultimately become $40,000 which will create a positive psychological impact. The historic data shows that the Bitcoin price remains above the production cost. The halving events triggered a bullish momentum in 2016 and 2020.

However, it’s worth noting that businesses are more concerned about fraud, regulatory uncertainties, and volatility. Therefore, the institutional demand is consistently declining. Unlike retail investors, institutional investors consider gold as a hedge against inflation. Therefore, they purchased gold following the collapse of Silicon Valley Bank whereas the retail investors rushed towards Bitcoin.

Bitcoin Weekly News by CryptoQuant

CryptoQuant, the crypto analytics platform, has shared Bitcoin’s analysis saying that Bitcoin is about to transition from a bear market to a bullish one. The analysis shows that the unrealized loss indicator reached its lowest point during the bear market. It shows that Bitcoin has already bottomed out. 

Realized price metric, on the other hand, has remained stable in a particular range after breaking through the current price barrier. The stability indicates that Bitcoin is about to transition to a bull market because the market participants are again gaining confidence.

However, the analysis also mentioned that the severity of the economic downturn may cause a negative impact in the fourth quarter of 2023. But there are fewer changes of Bitcoin reaching new lows. The analysts claim that the price drop might be a final buying opportunity for Bitcoin lovers.

Google Searches for Crypto have Significantly Dropped

As discussed earlier, investors have lost interest in Bitcoin and the crypto market. Bitcoin was struggling in the same range before hitting $31,000. So, it’s been more than three months that the investors have been waiting for Bitcoin to set a direction. Compared to the peak in May 2021, the search term “crypto” has seen a significant decline in Google Trends data.

The decline began following the collapse of Terra Luna and FTX crypto exchange. However, the Google Trends show an increased interest in “memecoins” and decentralized finance during this period.

How Bitcoin may React to Upcoming FOMC Meeting?

The FOMC meeting is about to take place on June 14. The experts think that the crypto market will experience a slight correction before this meeting. The Bitcoin options put/call ratio has significantly declined compared to last week. However, Ethereum’s post-merge performance is widely welcomed by the audience. The staking demand has increased after the burning of more than 250k ETH tokens.

Amid rising debt and regulatory challenges in the United States, Bitcoin and Ethereum are showing strong resilience. So, the upcoming FOMC meeting may not leave a lasting effect on digital assets.

Bitcoin Weekly Technical Analysis

Bitcoin is still following the parallel channel that was highlighted last week. It was mentioned that the price could break out of the channel after some retracement. And some buying was observed on Friday after the retracement but it couldn’t sustain and today huge selling is observed in Bitcoin.

It was highlighted last week that Bitcoin can even break the $15,450-$15,700 support if the price breaks below this parallel channel. So, investors must carefully observe the price movement before opening a new position.

Conclusion

The future of Bitcoin crossing $31,000 again remains uncertain as investors have become doubtful. However, factors such as the upcoming halving event, positive indicators from CryptoQuant analysis, and resilience against economic challenges provide hope for a potential bullish market.

Despite declining interest in the crypto market and the upcoming FOMC meeting, Bitcoin’s technical analysis suggests cautious observation before making new investment decisions. Overall, the direction of Bitcoin’s price movement is still uncertain, but opportunities may arise for those who believe in its long-term potential.

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