The price of Bitcoin has remained stable at approximately $111,000 following a period of significant volatility. Analysts at TD Cowen have forecasted that Bitcoin could potentially reach $141,000 by December.
In a report issued on Monday, the firm emphasized the recent fluctuation in the cryptocurrency market as indicative of the broader resilience exhibited by the crypto ecosystem.
A flash crash that occurred earlier this month resulted in around $19 billion in liquidations, marking the largest single-day liquidation event in the history of cryptocurrency. Despite the magnitude of the sell-off, TD Cowen observed that most exchanges continued to function with minimal disruption, underscoring the market’s capability to withstand shocks, as reported by The Block.
The initial downturn can be attributed to U.S. President Donald Trump’s announcement of a 100% tariff on imports from China, which led to a decline of over 10% in the total cryptocurrency market. While less reputable tokens experienced severe losses, major digital assets, including Bitcoin, demonstrated relative stability; Bitcoin experienced a brief decline of 15% but ultimately closed down only 8% for the day.
This surge in adoption has prompted Japan’s Financial Services Agency to reassess its longstanding restrictions on banks’ investments in digital assets such as Bitcoin.
The price of Bitcoin has returned to around $111,000 following a dip into the $104,000 range last week, bolstered by renewed corporate accumulation and optimism surrounding a potential resolution to the U.S. government shutdown.
Bitcoin concluded September near its current price, although prior to the flash crash, it achieved all-time highs in early October.
Bitcoin Price in a State of Flux
According to analysts, critical resistance levels for Bitcoin are identified at $112,000, $115,500, and $117,600, with a convincing break above $122,000 needed to shift market sentiment back towards bullishness. Conversely, support below $105,000 may prove to be insufficient, with stronger support levels noted at $98,000–$96,000.
In the upcoming week, a modest rebound may be anticipated; however, failure to maintain levels above $106,900 could pave the way for prices to descend below $100,000, particularly if the Federal Open Market Committee does not enact a significant rate cut.
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