Bitcoin price is seen as potentially recording a rebound if the United States Federal Reserve (Fed) decides to maintain interest rates at the next meeting.
At the time of writing, Bitcoin price is at $63,892, down 0.06% since it opened early Monday trading in the Asian session.
This view is shared by experienced macro investor, Jordi Visser, who believes that the current pressure on the crypto market may be coming to an end.
According to Visser, Bitcoin has just formed a technical signal known as a bullish RSI divergence, an indicator that is often associated with a change from a downtrend to an uptrend.
Although Bitcoin price previously fell below $60,000, the relative strength index (RSI) reading did not record a new low, indicating that selling pressure is starting to subside.
He admitted that Bitcoin price is still at risk of falling to around $50,000 or $45,000 if market sentiment continues to weaken.
However, for long-term investors, he believes that the world's largest digital asset still has great potential to surpass the $100,000 mark within the next year.
Visser also explained that one of the factors that has pressured the crypto market throughout the year is the change in investor capital flows.
According to him, most of the funds have shifted to the artificial intelligence (AI) sector which offers higher returns.
This situation has caused many digital assets to fail to attract investor interest even though the crypto industry's fundamentals continue to grow.
In addition, the direction of Bitcoin is now seen to be increasingly influenced by US monetary policy.
The market is still assessing the possibility of the Fed raising interest rates at its next meeting, but Visser believes that the central bank is more likely to maintain the current rate due to expectations of decreasing inflationary pressures.
If the Fed does not continue to raise interest rates, he expects investor sentiment to recover and Bitcoin has the potential to trade above $70,000 in the near future as concerns over monetary policy begin to subside.
At the same time, the development of the digital asset industry is also seen to be increasingly positive as the US government begins to pay greater attention to the use of digital assets and stablecoins in the country's financial system.
The move is seen as boosting investor confidence in the long-term prospects of the crypto market.
While price volatility is expected to continue in the near term, Visser believes Bitcoin's fundamentals remain strong.
With the support of more stable monetary policy and increasing acceptance of digital assets, he sees opportunities for Bitcoin to regain its upward momentum in the coming months.
