The price of the leading cryptocurrency is expected to drop below $100,000 by this weekend, suggested Jeffrey Kendrick, head of digital asset research at Standard Chartered, as reported by The Block.
He considers the current correction to be short-lived and views it as a buying opportunity. According to Kendrick, the rally to a historical high above $126,000 was interrupted by concerns over the trade war between the US and China, which triggered a plunge.
The analyst believes investors should monitor the capital flow from gold to bitcoin. He noted that the recent sell-off in precious metals coincided with an intraday rebound in the price of the leading cryptocurrency.
Kendrick described this as a “sell gold, buy bitcoin” flow. In his view, such rotations will become more frequent and signal the formation of a bottom.
Among other indicators of a reversal, the expert highlighted a reduction in liquidity. He suggested that the Federal Reserve’s response to new conditions might be to pause its quantitative tightening program.
Technical analysis also points to an imminent reversal. Kendrick noted that the 50-week moving average has been acting as support since the beginning of 2023, when the asset was trading around $25,000.
The analyst advised investors to “be flexible and ready to buy on a dip below $100,000.” He called this “the last time bitcoin will EVER be below” this level.
Kendrick’s year-end forecast remains at $200,000. By 2028, he expects to see digital gold at $500,000.
At the time of writing, the leading cryptocurrency is trading around $109,800, having gained about 2% over the past day, according to CoinGecko.
Back in July, Kendrick stated that clients of Standard Chartered’s US division showed more interest in “stablecoins” than in bitcoin.
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