Bitcoin Bulls Beware: Deutsche Bank Survey Sparks Fears Of Plunge Below $20,000

Bitcoin (BTC)

Bitcoin (BTC)

A recent consumer survey by Deutsche Bank revealed a split sentiment regarding the future trajectory of Bitcoin’s price. While grim, this outlook comes when Bitcoin has been on a rollercoaster ride.

The asset has recently achieved a new all-time high and declined significantly following that, but it has rebounded by nearly 10% in the past week.

Bitcoin Survey Sends Shivers

Respondents noted a notable level of pessimism about the cryptocurrency, with some predicting a potential drop below $20,000.

This unexpected sentiment suggests uncertainty in the market, particularly after BTC reached record highs in mid-March.

The survey, which polled over 3,600 participants, highlighted a divergence of opinions. Approximately one-third anticipate BTC’s value plummeting to levels last seen during the bear market in 2022.

While consumer sentiment is cautious, expert views on Bitcoin’s future appear more optimistic. Mike Novogratz, CEO of Galaxy Digital, anticipates that BTC will benefit significantly from the Federal Reserve’s expected rate cuts this year.

Despite the Federal Reserve’s indications of lowering its benchmark interest rate by up to three-quarters of a point, the timing and extent of these cuts remain uncertain. Investors closely monitor these developments, with expectations for rate reductions shifting rapidly over recent months.

Novogratz, for instance, believes that the Fed’s decision to lower rates could have “profound” implications for the US economy and various assets. While he expresses concerns about the lack of compelling reasons for rate cuts, he remains confident that they will proceed as planned.

Bitcoin Technical Analysis And Price Predictions

In addition to expert opinions, technical analysts are offering insights into Bitcoin’s potential price movements. One such analyst, TechDev, has identified a rare technical pattern in Bitcoin’s historical price data.

By examining price fluctuations since 2011, TechDev observed a distinct correlation in Bitcoin’s price behavior across different years. Specifically, TechDev pointed out a pattern where BTC’s price closed two consecutive months above the upper Bollinger bands, leading to a doubling in price within three months.

Based on this analysis, TechDev suggests that Bitcoin’s price could surge to almost $140,000 by July 2024. This technical indicator adds another layer to the discussion surrounding BTC’s future price trajectory, offering investors a potential roadmap for their investment decisions.

Meanwhile, BTC price has experienced notable volatility at the time of writing, with an 8% increase over the past week but a 2% decline in the past 24 hours. 

BTC price is moving sideways on the 4-hour chart. Source: BTC/USDT on TradingView.com

Featured image from Unsplash, Chart from TradingView

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