AI forecasts Bitcoin price on May 1, 2024
In the ever-evolving landscape of cryptocurrency, investors find themselves amidst a complex tableau. Bitcoin (BTC) once again commands attention this week, as it navigates significant price fluctuations against the backdrop of global economic shifts and cryptocurrency developments. Presently, on April 18, Bitcoin’s price stands at $61,080, reflecting a decline of approximately 13.85% over the past week, shedding over $180 billion from its market capitalization.
Bitcoin’s trajectory over the past seven days. Source: Finbold
Critical BTC Levels to Monitor
The current state of Bitcoin trading marks a pivotal juncture, as the cryptocurrency grapples with pivotal support and resistance thresholds. The immediate support lies at $58,072, closely trailed by a more hopeful resistance at $64,499.
Artificial intelligence (AI) algorithms predict a bearish trajectory in the long run, suggesting a marginal decrease of 1.7%, with a target price of $60,044 by May 1.
BTC Forecast for May 1, 2024. Source: PricePredictions
Conversely, in the short term, machine learning algorithms signal a bullish trend, hinting at a potential uptick in the coming hours. These algorithms deploy technical analysis (TA) indicators such as the relative strength index (RSI), moving average convergence divergence (MACD), Bollinger Bands (BB), average true range (ATR), among others.
Alongside AI prognostications, crypto analyst Ali Martinez underscores the significance of key support levels in shaping Bitcoin’s trajectory. Martinez suggests that a breach below $62,300 could precipitate a decline to $56,200, while a surge above $62,300 may indicate an upswing to $66,500.
Meanwhile, cryptocurrency analyst CryptoCon posited on April 17 that the ongoing correction serves as a crucial step towards achieving long-term price stability.
External Factors Impacting Bitcoin
The strengthening of the dollar, buoyed by the Federal Reserve’s decision to refrain from interest rate cuts, dampens the bullish sentiment surrounding BTC. Investors anticipate higher future interest rates, rendering dollar-denominated assets more appealing. This poses a challenge for Bitcoin as it approaches its halving event slated for April 19 or 20.
Both the halving event and the dollar’s ascendancy are poised to influence Bitcoin’s future price trajectory. Historically, Bitcoin has thrived amidst a weakened dollar, with its value ascending inversely to the dollar’s descent. However, the impending halving event adds an element of uncertainty to Bitcoin’s future trajectory.
Disclaimer: The information provided herein should not be construed as investment advice. Investment carries inherent risks, and capital is susceptible to loss.
