AI Makes Astonishing Bitcoin Price Prediction for May 1, 2024

Bitcoin (BTC) price has been quite volatile over the past few months with the leading cryptocurrency value recording some huge swings in both directions especially since the start of the year. A sustained upward trajectory saw the digital asset hit an All-Time High (ATH) of $75,830 on March 14, 2024. Since then the price has pulled back substantially, dropping to a low of $61,930 a week later and has been hovering above that level with sustained sharp upwards and downwards movements.

The present state of Bitcoin and the cryptocurrency market is a confusing environment that is proving to be a nightmare for Investors. This uncertainty is further compounded by Bitcoin gaining prominence in the mainstream financial market, changes in the global economy and advancements in cryptocurrency regulation among other influences.

AI Price Prediction for May 1 2024

Investors, traders, analysts and finance experts are finding it difficult to make calculated guesses and informed predictions about the future movements of the digital asset’s price given the underlying tricky circumstances. This has given rise to the development of Artificial intelligence (AI) machine algorithm models to help with Bitcoin price prediction.

The AI model has made predictions based on Bitcoin’s long-term trend that point to a target price of $60,044 by May 1.

May 1, 2024 BTC Prediction. Source: PricePredictions

According to the model, Bitcoin will follow a bearish trend in the long term, culminating in a projected minor decrease of 1.7% from today’s (April 18) price. Notably, however, the algorithm has a positive outlook for the short term, suggesting a possible little increase in the upcoming hours later in the day.

As of April 18th the price of Bitcoin is $61,080, a significant decrease of about 13.85% over the past one week and a loss of more than $180 billion in market capitalization. Today’s price marks a 3.49% decline from yesterday’s going rate further adding to the uncertainties about its future course. As a result of the recent decline, the market value of Bitcoin has fallen to $1.293 trillion.

Considerations for AI prediction Algorithm

The Bitcoin price prediction algorithms deploy various 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. They use a combination of these indicators and tools to forecast the movement of the asset based on its history and prevailing macro conditions.

The current crypto market situation for Bitcoin is also pivotal for the prediction model with market data and other trading metrics factored in the final forecast. For instance, as aforementioned, the cryptocurrency market is struggling with maintaining key support levels and grappling with breaking significant resistance levels that are necessary to maintain an upward trajectory.

Based on market analysis by crypto expert Ali Martinez on Twitter, the immediate support level for Bitcoin is $58,072, closely followed by a more optimistic resistance level at $64,499. Therefore, the asset’s movement across these levels is quite critical in determining its ultimate price by the end of this month. According to Martinez’s post on Twitter, $61,000 is a very important level for BTC. If it breaks, it will trigger a correction to $56,200, but if Bitcoin can rebound, we could see an upswing to $66,500.

Another seasoned crypto analyst, named Cryptocon, shared a different opinion based on his understanding of the market dynamics. He stated through a Twitter post that the ongoing correction is an essential measure aimed at achieving long-term price stability.

Externalities Affecting Bitcoin Price

The Federal Reserve’s decision to postpone interest rate decreases has strengthened the dollar, which in turn poses a threat to a bullish outlook for Bitcoin. Historically, Bitcoin has benefited from a weak dollar, with its price rising as the dollar falls.

With this in mind, investors ought to rethink their investment strategy in light of the Federal Reserve’s confidence in the strength of the economy, which is reflected in this decision. Because of this, interest in assets denominated in dollars has grown, drawing focus away from cryptocurrencies like Bitcoin.

The upcoming halving event, scheduled for April 19th or 20th, also, makes it difficult to predict Bitcoin’s future direction especially considering the effect it will have on the demand and supply forces that play a hand in the asset’s price. More importantly, this reduction in the rate of new Bitcoin creation directly affects the supply side of the equation, potentially impacting Bitcoin’s price dynamics in unpredictable ways.

Market sentiment is also another critical factor that plays a pivotal role in determining Bitcoin’s price movements. Positive sentiment frequently drives up buying activity and price increases. It might be stoked by institutional adoption, regulatory clarity, or broad public approval.

Fear and Greed Index April 18, 2024 Source: PricePredictions

On the other hand, unfavourable sentiment brought on by things like security lapses, government crackdowns, or uncertain economic conditions, can lead to selling pressure and price drops. Given that speculation and investor emotion play a major role in driving the value of Bitcoin, it is imperative to keep an eye on market sentiment in order to predict price patterns and make well-informed trading decisions.

Conclusion

In the face of Bitcoin’s wild price swings and erratic market conditions, artificial intelligence (AI) becomes a useful instrument for projecting the cryptocurrency’s future course. The market is proving to be difficult for investors given the recent highs and lows of Bitcoin, which saw an All-Time High (ATH) of $75,830 on March 14, 2024, followed by a significant decline. AI models currently predict that the target price of Bitcoin will be $60,044, by May 1, 2024 indicating a slight 1.7% decline from the current price of $61,080. Even while artificial intelligence (AI) offers short-term optimism, market sentiment, Federal Reserve policies, and impending halving events all continue to affect Bitcoin’s price dynamics, making accurate predictions essential for investors.

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Disclaimer: This article is for information purposes only. No content on this website should be construed as investment advice. Investing is a risky undertaking. Investing involves a risk to your capital. Do Your Own Research (DYOR).

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