Rob Ginsberg of Wolfe Research believes Bitcoin could see more weakness in the near future. In a research note published today, he explains that the world’s largest cryptocurrency has already lost more than 11% in a little over a week and is likely to fall further.
Ginsberg expects a rise in the short-term, but he believes that when Bitcoin does eventually break out to the upside, it will likely be lower than the current trend. Christopher Jaszczynski, another crypto analyst, also dubbed Bitcoin as being on a ‘knife’s edge’ today.
The U.S. Federal Reserve’s release of its July meeting minutes showed that most members saw a possibility of further rate hikes ahead, which could be a headwind for Bitcoin. Additionally, Wolfe Research analysts note that the U.S. Dollar regaining strength is a growing challenge for the cryptocurrency.
Rob Ginsberg states that as a result of near-term headwinds, Bitcoin prices will probably fall and volume will remain muted. However, he adds that if history is any guide, price increases will be sudden. The report also notes that $31,000 is an important level that has been rejected multiple times this year.
