“Standard Chartered predicts Bitcoin recovery over the weekend”

Standard Chartered Predicts Bitcoin Recovery Over the Weekend

Standard Chartered is known to periodically publish analyses that predict the price trend of Bitcoin and other cryptocurrencies. Now the British investment bank is forecasting a price recovery for Bitcoin over the weekend, caused by the liquidation of a distressed mining firm. The bank expects this event to trigger a short squeeze, it’s noted in a report sent to institutional clients on Thursday.

Geoff Kendrick, who is leading the analysis for Standard Chartered, says that the short squeeze has been provoked by certain speculative positions. He reminds us that the bank had already corrected its Bitcoin forecast from $50,000 to $120,000 for the end of 2024 in July of this year. Kendrick points to a mining firm that is currently liquidating Bitcoin and thus creating additional liquidity.

Kendrick sets the subtext that if the predictions are correct, Bitcoin can stabilize at a price above $30,000 by Sunday. Liquidations by miners and their impact on Bitcoin price trends are generally observed as scenarios that can challenge the structure of the market, as such offering speculative transaction opportunities.

Standard Chartered’s analysis should be taken as an indication of heightened volatility in Bitcoin during the weekend. Incompatible market expectations lead to sudden price fluctuations when market positions are noticeably adjusted, as Standard Chartered writes. Nevertheless, the current market environment is characterized more by cautious buyers than by euphoric ones.

After all, in 2023 Bitcoin has not yet significantly tested the $30,000 mark, which Kendrick says sends warning signals to cautious investors that engaging in a potential rally is risky. Regardless, Kendrick thinks Friday could prove to be the ideal time to take a speculative position on Bitcoin.