Bitcoin is undergoing a period of changes, having reached new all-time highs, and analysts are forecasting potential scenarios for future price movements.
Consolidation and Predictions from Galaxy Digital
According to Michael Harvey, head of trading at Galaxy Digital, Bitcoin may face a short consolidation phase after its recent surge to historical highs. He expressed that current prices might stabilize given the significant rally. "Consolidation around current prices is my base case given the large rally and new ATH," Harvey noted.
Trends and Demand for Bitcoin
Harvey highlighted that there is a possibility of Bitcoin continuing to rise towards the end of July. This would require sustained inflows into Bitcoin-based exchange-traded funds. He also mentioned increasing demand from Bitcoin treasury firms, but there remains debate regarding retail demand. For instance, Coinbase recently climbed to number 137 on the US App Store, which may indicate rising interest, but the low number of Google searches for "Bitcoin" suggests that broader retail interest has yet to materialize.
Worst Case Scenario for Bitcoin
To consider a negative scenario, Harvey indicated that Bitcoin’s price could drop below $110,000. "Bear case is a risk-off move driven by profit taking and/or equity market weakness, which I believe could see BTC retrace 5-10%," he added.
Thus, the current price movements of Bitcoin are subject to temporary consolidation, despite having growth potential. Analysts emphasize the need to monitor retail demand and ETF fund inflows.
