Bitcoin, the largest cryptocurrency, is nearing the $120,000 mark, yet tensions are rising between optimism and sell-offs.
Optimism Amid Bearish Sentiments
Analyst known as Mr. Wall Street noted that Bitcoin has established a local bottom around $116,000 after a predicted pullback. He forecasts the asset could rise to $120,000 - $123,500 in the short term, followed by a mid-term range of $133,000 - $140,000. However, he cautioned that long-term holders have started to offload their positions, which may signal a potential market top forming by late October or early November.
> "It’s clear that these individuals know how to play this game," the expert noted. "The fact they have already started to reduce the size of their own spot positions, after holding for three years, is a sign that they are anticipating a cycle top coming soon."
Macro Factors
The immediate outlook still faces a few tests, including the July FOMC meeting, though no rate cut is expected. Mr. Wall Street mentioned that markets are pricing in potential cuts in September, which could fuel a pre-meeting pump followed by a correction.
Current Market Dynamics
At the time of writing, Bitcoin was trading at $119,269, up 0.9% over the past 24 hours but down 2.9% over the past week. The asset gained 9.4% over two weeks and 15.3% over the past 30 days, yet remains 2.9% below its all-time high from July 14.
Bitcoin showcases fluctuations near the $120,000 mark amid a complex blend of market factors and long-term investor actions, highlighting potential uncertainty in future movements.
