Bitcoin Price & Crypto Markets Comeback Likely: Matrixport
Highlights
- Bitcoin price could provide a directional bias soon suggests Matrixport's recent report.
- Korean Traders play a significant role and could drive crypto markets higher.
- On-chain metrics show investors are preparing to buy the dips, should BTC price correct and drag crypto markets with it.
The crypto markets are in a muted volatility phase, with Bitcoin (BTC) price hovering sideways. This outlook, while true, might end in roughly a week or two, triggering a comeback for both BTC and altcoins.
Why is Bitcoin Price Down?
There are four reasons for the recent descent in Bitcoin price:
- Recession fears triggered by uncertain macroeconomic conditions.
- Geopolitical tensions due to the war between Palestine and Israel.
- The US Government selling BTC.
- A drop in Donald Trump’s odds against Kamala Harris in the 2024 presidential elections.
As of August 19, BTC price slid 1.62% and is currently trading at $58,355. Investors can expect a relief bounce in crypto markets as BTC trades above the previous week’s Value Area Low (pwVAL) of $57,958. Investors can expect the pioneer crypto to tag the previous week’s Point of Control (POC) at $59,384.
While the start of the week might seem bearish, investors can expect Bitcoin price to climb nearly 2% and form a local top around $59,600. In an optimistic case, BTC might retest the $60,000 psychological level.
Crypto services firm Matrixport recently posted their thoughts on Bitcoin price and forecast the chance for a comeback in the next few weeks. Their thesis is based on the connection between BTC funding rate and crypto trading volumes in Korea.
Matrixport added that Korean traders play a significant role in the crypto markets. The firm suggested that the funding rate is likely to crash even more as the Korean trading volumes have dipped below the $1 billion mark for three consecutive days.
But one key thing Matrixport points out is that the upcoming Korean Blockchain Week that spans the first week of September could play a role in reviving the crypto market slump and trading activity.
Crypto Market Prepares To Buy The Dip
According to data from Santiment, there was a massive spike in stablecoin deposits on August 5, when Bitcoin price crashed to $48,914. This uptick showcases that investors are preparing to buy the dips.
Furthermore, the supply of Tether (USDT) on exchanges has spiked from 15.68 billion to 16.72 billion in the past week. The 6.63% increase adds credence that investors are waiting to scoop BTC and other altcoins should the crypto market see a further decline.
All in all, investors can expect a bullish Bitcoin price forecast in the coming days, bringing the rest of the altcoins up with it.
Frequently Asked Questions (FAQs)
1. Why is Bitcoin's price currently down?
2. What indicators suggest a potential comeback for Bitcoin and altcoins?
3. What can crypto markets expect in the coming days?
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