As a seasoned analyst with over two decades of market analysis under my belt, I’ve witnessed numerous market cycles and trends. Bitcoin’s current trajectory is reminiscent of the late ’90s dot-com boom, where the market was buzzing with enthusiasm, much like today’s crypto space.
Bitcoin is climbing higher when writing, technically bullish but steadying below August highs. Even though there are pockets of strength and the general market sentiment is bullish, looking at the CoinMarketCap poll, buyers should do more.
Selling Bitcoin At $74,000 Will Be “Disastrous”
If the price surpasses the $65,000 and $66,000 resistance barrier, it could trigger a surge in demand that might propel the coin to new record highs. However, obstacles are likely to appear around the $70,000 and $72,000 price points.
If purchasers regain control and the coin reaches new record highs again, one analyst from X advises that those who sell at this level are making a “serious” error. In his opinion, selling around $74,000 would be “far too premature,” as the coin may continue to rise further.
From a technical perspective, the Bitcoin price continues to be contained within an uptrend pattern known as a “bull flag.” Even though there was a drop following the surge to a new high in March 2024, the overall control remains with buyers. If the price manages to break above the resistance trendline, it could lead to a significant increase, validating the gains made during Q4 2023 and Q1 2024.
Though technical candlestick formation may favor bulls, fundamental factors play a crucial role based on the analyst’s point of view. The analyst argues that selling at around $74,000 will be a mistake because, among other factors, the People’s Bank of China (PBoC) is propping up the country’s economy by injecting liquidity.
China Injecting Liquidity, Institutional And Monetary Policy Shifts To Boost BTC Demand
So far, the analyst has observed that the central bank has unveiled a 10-point plan aimed at boosting the faltering Chinese economy. By infusing more money into the system and reducing rates, this move could have positive effects worldwide. Given the rising global liquidity, Bitcoin might gain from a less stringent monetary policy in China, Japan, and the U.S.
Additionally, the declining U.S. Dollar Index (DXY) could potentially provide a base for Bitcoin. When the US dollar weakens, economies like those in Europe might opt for more economic stimulus measures.
The action taken might lead investments shifting towards tangible assets such as Bitcoin. Notably, gold is currently close to its record peak, suggesting that Bitcoin may mirror gold’s trajectory as investors opt to purchase these assets to hedge against rising inflation.
The analyst additionally highlighted other advancements, such as the U.S. granting BlackRock’s application to list and facilitate trading of Options for IBIT (their spot Bitcoin ETF). Combined with banks like BNY Mellon expressing interest in Bitcoin custody, this could signal the beginning of fund managers starting to hold BTC on behalf of their clients.
Read More
- USD ZAR PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- EUR ILS PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- CKB PREDICTION. CKB cryptocurrency
- WELSH PREDICTION. WELSH cryptocurrency
- HUDI PREDICTION. HUDI cryptocurrency
- REF PREDICTION. REF cryptocurrency
- EUR RUB PREDICTION
- ASTO PREDICTION. ASTO cryptocurrency
2024-09-25 18:41