K33 Research has highlighted the possibility that Bitcoin ($BTC) will reach a bottom value as the perpetual funding rates are still negative. Analysts have further highlighted that average returns after a 30-day average funding rate could flip to negative, supporting the case for a bullish end to this year.
That said, bullish sentiments are largely dependent on macroeconomic factors like rate cuts and jobs data. The CPI release is tentatively scheduled to happen on Wednesday. That will pave the way for future announcements and movements on the price chart. A cut of 25 bps is already on the table, but the community is seeking a more aggressive turn to 50 bps.
Before rising to a new ATH, Bitcoin may first reach a bottom or see a reduction in value. The market has started de-risking, and the trend is quite common across the Nasdaq and S&P 500 due to negative returns at the beginning of September. Bitcoin and the S&P 500 are reportedly at a 23-month high of 0.67. The Federal Reserve is likely to announce rate cuts on September 18. The latest decision on rate cuts will enable investors to take action on their investment in the ecosystem. They will likely continue or find a way to make more money due to the complexities.
The theory behind Bitcoin’s outlook remains optimistic. The token is poised to reach $100,000 by the end of this year. Alternatively, it could wrap up the books at around $150,000, depending on a variety of market factors and sentiments.
Previously, reaching market bottoms was associated with the monthly funding rate hitting a low. According to K33 data, average 90-day returns have reached 79%, with a median 90-day return of 55%. The thesis is on top of the FED pivot, US elections, delayed halving effects, and FTX repayments. Meaning, the market could surge for more than 1-2 reasons, which are more generally discussed by crypto enthusiasts.
The current price of BTC is $56,796.85, a decrease of 0.68% over the past 24 hours. However, it reflects a rise of 0.43% in the last 7 days and a notable decline of 4.99% in the last 30 days, at the time of writing this article. Near-term predictions for Bitcoin are stronger. The next 5 days are projected to see BTC exchange hands at $67,612. The next 30 days could see Bitcoin trade at $79,973, with a jump of 41.55% from the current value.
With an FGI of 37 points, volatility is just above 4%. BTC is still undervalued and could rebound in the coming days. This stems from the 50-day SMA, which is $60,519, and the 200-day SMA, which is $61,888. BTC closed at $67,576 in the April-May 2024 cycle. An ongoing downswing could be a potential correction phase that is about to come to an end.
