Bitcoin Price Prediction: BTC Bullish Signals Persist Despite Short-Term Volatility

Bitcoin (BTC) keeps struggling to move above key resistances, and it is dropping for a second consecutive day today as headwinds abound.

A challenging macroeconomic backdrop in the form of a hawkish Federal Reserve in the United States has been one of the biggest obstacles that have prevented crypto prices from breaking relevant price zones.

Moreover, persistent geopolitical tensions in the Middle East continue to keep investors on the fence about rotating capital toward risky assets.

In addition, the Coldcard hack was some sort of cherry on top for market participants, as it questioned a long-standing assumption concerning the safety of cold wallets.

Thus far, investigators continue to uncover the extent of the losses caused by this wallet’s technical weakness. The latest estimates point to a range between 1,400 and 1,700 BTC tokens drained, valued at more than $100 million.

Finally, market participants have found other corners of the tech space like artificial intelligence (AI) and space travel more appealing, as they have clearer use cases compared to cryptocurrencies.

Saylor Adds Fuel to the Fire as Strategy Sells $440M Bitcoin

Roughly 17 years after the launch of Bitcoin, the degree to which institutions have adopted blockchain technology remains slow.

In August alone, we reported that whale wallets have acquired approximately 30,000 BTC tokens, indicating ongoing accumulation as BTC continues to trade relatively range-bound between $60K and $66K.

However, not all whales are buying. Michael Saylor’s BTC-focused digital asset treasury, Strategy, has disposed of 6,916 tokens valued at more than $440 million since June. The company has made 4 consecutive sales, two of which were used to fund its USD reserve, while the proceeds obtained from the other two were used to buy MSTR shares.

Regardless of how they are classifying these sales, they are considered a clear departure from Saylor’s initial commitment to not sell any Bitcoin.

Weekly Buy Signal Still Intact Despite Bitcoin’s Ongoing Struggles

Heading to the charts, we continue to track a weekly buy signal we shared months ago, which triggered once the Relative Strength Index (RSI) hit 30 in this higher time frame.

This signal has yielded positive results in the past and, on two out of three occasions, it has marked the end of previous bear markets.

The price of BTC has rallied off these cycle bottoms right after or has retested them once before resuming its rally. However, market conditions were quite different at that point, as cryptocurrencies were still the most innovative tech at the time.

AI has displaced Bitcoin from that pedestal, and that could have a strong impact on its short-term price action. For now, we see the $60,000 threshold as the most relevant support to watch.

A move below that mark would lower the odds that this signal will play out as it did in the past. However, we continue to believe that, despite these many headwinds, we should be either at or near this cycle’s bottom.