In this video, I break down Bitcoin on the Daily, 4hr chart using Elliott Wave Theory. You’ll discover both bullish and bearish scenarios, plus the critical price levels and targets to watch.
Stay ahead of the next potential BTC move! Video by Koenz Trading.
Bitcoin (BTC) is in a period of consolidation, with potential for an upward move if it holds above key support levels, while a break below certain thresholds could trigger a further downturn. The current price is approximately €75,116.84 or $88,074.82 USD
Macroeconomic Factors: The potential for U.S. Federal Reserve interest rate cuts and continued strong inflows into Bitcoin Spot ETFs are cited as major tailwinds that could support the long-term bullish predictions.
Key Macroeconomic Factors Affecting Bitcoin
Monetary Policy and Interest Rates: Central bank decisions, particularly from the U.S. Federal Reserve, have a major impact.
Rising Interest Rates: When central banks raise interest rates, borrowing costs increase, reducing global liquidity and investor appetite for riskier, non-yielding assets like Bitcoin. This typically leads to downward pressure on prices.
Quantitative Easing/Low Rates: Conversely, low-interest rate environments and quantitative easing (money printing) tend to boost investor sentiment and drive capital flow into alternative, speculative assets, including cryptocurrencies.
Inflation: Bitcoin is often viewed as a potential hedge against inflation due to its fixed and predictable supply of 21 million coins.
High Inflation: When inflation in fiat currencies is high or rising, investors may seek alternative stores of value, increasing demand and potentially the price of Bitcoin.
Weak Fiat Currencies: In countries experiencing high inflation or currency devaluation (e.g., Nigeria or Turkey), local Bitcoin adoption and demand can disproportionately increase.
Economic Cycles (Recession/Expansion): The overall health of the global economy plays a role in investor risk appetite.
Economic Expansion:
During periods of economic growth and prosperity ("risk-on" conditions), investors are more willing to allocate wealth to higher-risk, higher-reward assets like Bitcoin.
Recession: During a recession, investors tend to become more risk-averse ("risk-off" conditions), pulling funds from speculative investments and moving towards safer assets like government bonds or the U.S. dollar.
Geopolitical Events and Regulation: Global political and regulatory landscapes create significant volatility.
Uncertainty/Conflict: Geopolitical tensions, wars, or major political instability can drive investors toward Bitcoin as a potential "safe haven" asset, similar to gold.
Government Regulation: Clear regulatory frameworks can foster institutional investment and confidence, while bans or restrictive measures can stifle growth and increase market uncertainty.
Global Liquidity Conditions and US Dollar Strength: Bitcoin tends to thrive when global money supply is abundant. A strong U.S. dollar, on the other hand, often correlates with capital outflows from risk assets as investors prefer to hold dollar-denominated assets, putting downward pressure on Bitcoin's price.
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