Bitfinex Analysts Predict Bitcoin Could Hit $120K,But Fresh Capital is Key
Bitcoin might be on its way to $120K,according to Bitfinex analysts. However,the road to recovery hinges on new investors entering the market.
On October 13, Bitfinex released a report on Bitcoin’s recent crash and potential recovery. The analysts noted a significant imbalance between sellers and buyers, with sellers outnumbering buyers by 2.5 times. This imbalance led to a massive liquidation event, wiping out nearly $1 trillion from the crypto market.
The crash was triggered by U.S.-China trade tensions. Bitcoin’s price dropped by 18.1%, while some altcoins fell up to 80%. The report highlighted that $19 billion in futures liquidations occurred in a single day.
Despite the crash, Bitcoin has shown signs of recovery. Bitfinex analysts believe BTC could reach $120K if it holds above $110K. However,this recovery depends on fresh capital entering the spot market.
Currently, macroeconomic conditions are unclear due to the U.S. government shutdown. This lack of data could mask underlying economic fragility. Analysts suggest that liquidity,credit confidence,and expectations of easing from the Fed are keeping the economy afloat.
For Bitcoin to fully recover, it needs strong spot demand. This will be influenced by macro conditions and the release of delayed economic reports once the shutdown ends.
