Bitcoin continues to show strong performance, nearing the $120,000 mark. However, some analysts warn of the potential for a drop to $113,000. Let's take a look at the concerns and positive aspects of the crypto market.
Bitcoin and Price Predictions
In the past week, Bitcoin displayed positive momentum and positioned itself towards the $120,000 level. Despite the growth, some traders express concerns about a price drop to $113,000. Popular trader Crypto Tony stated, 'If Bitcoin can hold above $117,000, then I think we're good for new all-time highs very soon.' Analyst Rekt Capital also noted that Bitcoin has 'kickstarted' a bull flag by closing the week at $119,450.
Impact of Macroeconomic Data
Significant macroeconomic data from the US is on the horizon, including the Federal Reserve's interest rate decision. It is expected that the Fed will maintain its current policy; however, investors will be focused on potential hints regarding future rate cuts. Traders analyze two key support and resistance levels in the market, which could indicate Bitcoin's future movement.
Progress on US Trade Deals
A recent trade agreement between the US and the EU, announced as one of the largest trade deals, has already positively impacted financial markets. This deal, which includes tax exemptions for key sectors, propelled risk assets, including stocks. The overall positive sentiment supports investors' interest in cryptocurrencies, among which Bitcoin stands out for its growth potential.
Bitcoin remains at the $120,000 level; however, analysts express caution due to uncertainty in the macroeconomic landscape and market behavior. The future of the cryptocurrency will depend on many factors, including liquidity and market reactions to economic data.
