As the workweek draws to a close, the recent inflation report boosted the cryptocurrency market. However, apprehension about upcoming developments and rising tensions with China have dampened traders’ enthusiasm. Some commentators, like Martinez, predict a downward trend due to potential retaliations between the U.S. and China.
Bitcoin’s Potential Plummet
Today, Martinez highlighted the MACD signal’s indication that Bitcoin prices could drop by 70%. His analysis aligns with the immediate aftermath of the U.S. market opening. Several factors contribute to his forecast:
- •On Thursday, Trump and China’s President Xi are expected to meet.
- •If negotiations fail by November 1, reciprocal tariffs will be enforced by both countries, with the U.S. threatening additional tariffs.
- •On November 5, the Supreme Court will decide on Trump’s tariff authority.
- •Next Wednesday, the Federal Reserve will announce its interest rate decision, with concerns about global trade tensions and Russian sanctions pushing inflation expectations higher, possibly disappointing rate cut expectations.
- •The government shutdown is expected to continue into the next week.
- •Bitcoin struggles to maintain the $110,500 support, and dropping below $107,000 may threaten the 1.5-year uptrend.
Thus, predicting a downtrend next week seems comfortable due to these outlined reasons. Martinez is likely intrigued by the potential validity of his prediction, emphasizing the MACD’s downward trend on the monthly chart. He values this signal due to its historical association with an average 70% loss.
Previously, Martinez noted that Bitcoin typically reaches a new ATH 1064 days after bottoming in bear cycles, marking a peak. He jestingly remarked that if BTC challenges $150k+ this year, he might be ridiculed.
PENGU Coin Analysis
With Bitcoin’s potential 70% drop, attention turns to Pengu Coin for short selling opportunities. Amid uncertainty, many analysts predict declines, but rampant fear often overlooks bullish news. It is beneficial to consider various analysts’ views but copying their strategies exactly is unwise.
Sherpa recently shared a Pengu forecast, suggesting it might perform better by the quarter’s end. He encourages analyzing the support levels marked on the chart for potential evaluations.