Bitcoin Price Prediction as BTC Falls to Lowest Level in 2024 – Where is the Next Support?

Arslan Butt
Last updated: | 3 min read

Bitcoin Price Prediction

Bitcoin price has experienced a notable decline, trading at $42,825 with a sharp decrease of nearly 7% on Saturday, marking its lowest level in 2024. This downturn comes amidst growing skepticism from Bitcoin’s leadership about its acceptance as a mainstream form of money.

Concurrently, the cryptocurrency landscape is witnessing a competitive battle among issuers of spot bitcoin Exchange-Traded Funds (ETFs), primarily centered around fee structures. Notably, Bitwise has emerged as a leader in Bitcoin ETF flows on the first day, signaling a shifting dynamic in the market.

This recent price dip raises crucial questions about Bitcoin’s next support level and the potential pathways for its recovery.

Bitcoin’s Leadership Expresses Doubts Over Its Future as Currency

BlackRock CEO Larry Fink, while acknowledging Bitcoin’s value as an asset class, expressed skepticism about its viability as a regular transactional currency. In a recent interview, Fink stated, “I don’t believe it’s ever going to be a currency,” viewing Bitcoin more as an alternative for wealth storage rather than a replacement for national currencies.

He also emphasized the likely emergence and future use of central bank digital currencies (CBDCs). Downplaying the importance of Bitcoin price forecasts, Fink admitted not giving them much thought.

Nonetheless, BlackRock’s increasing interest in the cryptocurrency sector, including potential ETF investments, could positively influence Bitcoin and foster wider acceptance among traditional investors and institutions, lending credibility to the industry.

Competition Heats Up Among Bitcoin ETF Issuers Over Fee Structures

On January 11, a significant milestone was reached in the cryptocurrency space as several investment managers, including Bitwise, BlackRock, VanEck, and Ark Investments, launched the first spot Bitcoin ETFs in the United States.

This development follows the U.S. Securities and Exchange Commission’s (SEC) approval of eleven applications, culminating a decade-long effort to bring Bitcoin ETFs to market. Most of these ETFs are competitively priced, with fees undercutting the average rate for U.S. ETFs.

Many issuers are further attracting investors by waiving or substantially reducing fees. This strategic move is expected to enhance Bitcoin’s institutional legitimacy and engagement, potentially influencing public perception and driving its price upward.

Bitwise Leads Bitcoin ETF Flows on Day 1; Positive Impact on Bitcoin Price

Bitwise Asset Management led the way on the first day of spot Bitcoin ETF trading, garnering $237.9 million in inflows, the highest among the 11 SEC-approved products.

Collectively, issuers attracted approximately $721 million and generated a trading volume of $4.7 billion, surpassing the $4 billion forecasted for total inflows. Following Bitwise, iShares Bitcoin Trust and Bitcoin Fund ranked second and third in inflows.

Bitwise’s competitive fee structure, which includes no fees for the first six months followed by a 0.20% rate, contributed to its leading position.

Despite long-term optimism for substantial inflows into Bitcoin, analysts caution that initial numbers may reflect short-term trading interests.

This surge in interest, following the SEC’s prolonged reluctance, signals a growing market for Bitcoin ETFs, potentially impacting BTC prices positively.

Bitcoin Price Prediction

As of Saturday, January 13, Bitcoin’s technical indicators continue to signal caution among traders. The cryptocurrency’s pivot point remains at $44,300, facing immediate resistance at $45,175, $45,950, and more significantly at $47,250.

On the support side, key levels are observed at $42,642, followed by $41,470 and $40,570. The Relative Strength Index (RSI) is hovering around 33, further suggesting the possibility of Bitcoin entering oversold conditions.

Recent trends in the 4-hour chart show a breach of the upward channel near $45,000, confirming a bearish inclination. Bitcoin’s price currently lingers below this critical mark, intensifying the bearish outlook. A pivotal level for potential recovery or further decline lies around $42,600.

Bitcoin Price Chart
Bitcoin Price Chart – Source: Tradingview

The 50-Day Exponential Moving Average (EMA) stands at $45,700, which is above Bitcoin’s current price, adding weight to the prevailing bearish sentiment.

Given these technical observations, Bitcoin’s short-term outlook leans towards bearish, with a key focus on whether it can surpass the $42,600 threshold.

Investors and traders are advised to keep a close watch on these levels, as they could indicate potential shifts in the trend, either towards recovery or a continued downward trajectory.

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