The Bitcoin market is facing mixed predictions, driven by both technical analysis and external factors such as geopolitics. The political turmoil did harm Bitcoin before. Market analysts say that as tensions rise, cryptocurrency prices fall, unlike gold.

Bitcoin fell to around $59,000 as the crisis in the Middle East deepened and then recovered somewhat, but continued volatility is likely at play. Despite this uncertainty, the latest version of CoinCodex BTC price forecast offers a massive 40% enhance in the price of the crypto asset, which could reach a peak of $86,428 by November 2024.

Market expert Ali Martinez notes that Bitcoin is moving in a parallel bearish channel, a pattern generally associated with price declines. Bitcoin’s technical setup says it could fall to $52,000, adding to the uncertainty. Although CoinCodex predicts bullish growth, BTC’s future is uncertain.

#Bitcoin could fall to $52,000 if the dominant pattern in recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB

— Ali (@ali_charts) October 2, 2024

The impact of market sentiment on Bitcoin

Bitcoin price dynamics will depend on market sentiment. According to CryptoQuantThe long/tiny volume to open interest ratio is a noteworthy indicator that reflects a trader’s position: when this ratio increases, it means that long positions are dominating and is widely seen as a sign of positive market movement.

However, a little too much optimism in the markets means that prices should be adjusted downwards. On the other hand, too gigantic a tiny position also indicates bearish sentiment, but in extreme cases it may herald a price rebound.

BTCUSD trading at $61,696 on the daily chart: TradingView.com

Currently, Bitcoin sentiment remains neutral, with the Fear and Greed Index standing at 41, reflecting caution in the market. This suggests that despite a steady performance of 60% green trading days over the past month, investors remain cautious.

Geopolitical factors

Although geopolitical events have influenced Bitcoin’s price movement, beyond technical analysis, its movements are varied. According to cryptocurrency analyst Jesse Colombo, the coin’s price tended to decline during periods of heightened global tensions. There has been a rebound so far amid the Middle East crisis, and investors expect more of the same. The consequence of this is the drastic changes in the value of the alpha cryptocurrency, mainly in the event of a continuous enhance in tensions in various parts of the world.

The road lies ahead

Bitcoin’s future is by no means certain amid these mixed signals. Ali Martinez has a bearish outlook, but based on this assessment combined with CryptoQuant’s market sentiment analysis, the price could drop to $52,000. CoinCodex believes this will provide more reasons for optimism for BTC to enjoy well growth in the months and years to come.

Featured image from Vecteezy, chart from TradingView