The recent downturn in the cryptocurrency market, especially Bitcoin’s (BTC) drop below the crucial $40,000 support level, has left investors uncertain.
Indeed, the focus has shifted to how Bitcoin and the general market will respond, given that the crypto has not reacted significantly to potential bullish sentiments, particularly regarding the spot exchange-traded fund (ETF).
In the quest for insights into Bitcoin’s potential trajectory, Finbold turned to the Google Bard artificial intelligence (AI) tool developed by Alphabet (NASDAQ: GOOGL).
Google Bard Bitcoin bearish outlook. Source: Google Bard
However, Bard also highlights potential catalysts for recovery. The upcoming Bitcoin halving in April, which reduces the supply of new coins, could trigger increased demand and a price rebound. Additionally, increased institutional adoption and positive news developments could reignite a bull run, potentially propelling Bitcoin back toward its all-time high of possibly $68,000.
Google Bard Bitcoin bullish outlook. Source: Google Bard
In the meantime, Bard highlighted the potential impact of both bulls and bears struggling to control Bitcoin. The tool suggested a neutral price fluctuation in the $35,000-$45,000 range for most of the year in this scenario.
It is worth noting that a segment of the market contends that Bitcoin might be susceptible to further decline after losing the $40,000 support. At the same time, this drop aligns with reports indicating that whales have accelerated their offloading of Bitcoin in the past two weeks, dumping almost $3 billion worth of BTC.
With ETFs failing to act as key catalysts in the short term, attention has turned to the halving event, historically considered a significant bullish catalyst.
Bitcoin price analysis
By press time, Bitcoin losses had accelerated, dropping below the $39,000 mark. On the daily chart, Bitcoin was down 4%, trading at $38,961.
Bitcoin seven-day price chart. Source: Finbold
In the short term, bulls and bears are the market’s focus, determining who will emerge victorious in guiding Bitcoin closer to or away from the $40,000 mark.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
