Many members of the crypto community believe that Bitcoin's weakness in early August could push the cryptocurrency's price below the psychologically important level of $100,000.
Collected in one overview are the opinions of representatives of the crypto industry and forecasts from analysts.
Reasons for Bitcoin's Decline
The most capitalized cryptocurrency has tested levels below $115,000 twice in the last two days. The local minimum for Bitcoin was recorded at $114,607. The cryptocurrency began to decline after reaching an absolute maximum on August 14 — $124,457.
The trigger for the drop in BTC was negative economic data from the USA, which reduced the likelihood of a decrease in the Fed's key interest rate in September of this year. At the time of writing, over 83% of market participants believe in a decrease. Before the release of negative economic data, about 99% of respondents voted for such a scenario.
Bitcoin has also come under pressure due to a statement from the U.S. Treasury. It turned out that regulators do not plan to buy BTC for a national crypto reserve. The source of replenishment will be confiscations. This prospect frightened members of the crypto community, and many began to call for withdrawing all funds from exchanges.
Ahead (August 21-23) is the symposium in Jackson Hole, during which Fed Chairman Jerome Powell will speak. The future of the crypto market will depend on the signals the banker gives. Increased hopes for a rate cut in September could support the market's recovery. Negative signals could exert additional pressure on BTC.
What investors expect from Bitcoin
Members of the crypto community fear a drop in BTC below the psychologically important level of $100,000. Such results were shown by a survey from popular crypto-analyst PlanB. Over 60% of respondents from more than 25,000 participants in the vote believe that investors will see Bitcoin cheaper than $100,000.
Results of the PlanB survey
The drop in Bitcoin below $100,000 is also anticipated by popular analyst Doctor Prodit. He believes that BTC will break the psychologically important level in September. However, the analyst remains optimistic about the long-term prospects of the cryptocurrency. He believes that following the breach of $100,000, there will be a rise to new absolute highs within weeks and a prolonged increase that will be measured in months.
Crypto trader and investor 𝗰𝘆𝗰𝗹𝗼𝗽 does not rule out the possibility of BTC dropping below $90,000. However, he expects a rebound with a new high afterward.
Some members of the crypto community suggest that Bitcoin will manage to hold the psychologically important level. For example, trader Nebraskangooner believes that BTC could drop to the range of $102,000-$104,000. At these levels, in his opinion, there will be an opportunity to open profitable long positions.
Trader and analyst BitQuant also believes that Bitcoin will not drop below $100,000. In his opinion, there are no macroeconomic factors that could exert such strong pressure.
Recall that earlier BeInCrypto reported that Elon Musk's neural network Grok predicted Bitcoin's growth to $1 million.