The crypto markets are undergoing a roller coaster ride as the Bitcoin price is juggling between narrow ranges. The price has now dropped below $42,000 at the moment, suggesting a significant shift to the other altcoins within the space. This has caused the markets to maintain a silent trend while the global crypto market cap remains above $1.6 trillion. Besides, some possibility of the star crypto, Bitcoin, taking the liquidity below $40,000 emerges.
If Bitcoin plunges back below $40,000, what may happen to the crypto market trend in 2024? Will the bull run forecast remain in place, or will another year be marked for a recovery phase?
The BTC price is trading within the range of high and low levels, as the bulls fail constantly to elevate the token towards the resistance zone between $44,200 and $44,700. In such a case, can we expect a minor pullback?
A popular analyst, Michael van de Poppe, suggests a small trend reversal for the star token and believes the price will drop below $40,000 soon.
“The markets are still consolidating, which is normal.
I generally would be pleased to see Bitcoin take liquidity beneath $40K and go back up from there towards the highs and the ETF approval.”
Now that a drop in the BTC price could be imminent, will the token close the yearly trade on a bearish note? Here’s what may happen next in the crypto markets.
- Bitcoin may continue to rise and could also hit the highs. But the rally may only be for a short time frame.
- Further memecoins may begin to surge, which may indicate the end of the prevailing rally
- Whales and large players take a step back, which may initiate a minor dump within the markets
- The longs could get liquidated, due to which market participants may lose hope over the rally ahead
- The economy could turn bullish in the coming year, and fresh capital may make its way out
- Bulls and whales jump in, causing a significant rise in the markets that will be missed by retail traders.
The markets have been following more or less a similar pattern, and hence, repetitive action may be expected in the coming days. If this materializes, the bitcoin price may consume more time than speculated to form a new ATH beyond $70,000.
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