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.
A break above the $65,000 and $66,000 resistance zone could spark a wave of demand that may lift the coin to all-time highs. There will be roadblocks at the $70,000 and $72,000 levels.
If buyers take charge and the coin retests to all-time highs, one analyst on X warns that those who sell at that level will be making a “disastrous” mistake. From his outlook, exiting at around $74,000 will be “way too early” since the coin could rip higher.
Technically, the coin remains within a bullish formation. In the monthly chart, buyers are in control despite the dip after the rally to an all-time high in March 2024. Specifically, BTC prices are confined inside a bull flag. A close above the resistance trendline could trigger a lift-off, confirming gains of 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.
Thus far, the analyst notes that the central bank released their 10-point easing plan to stimulate the struggling Chinese economy. The decision to inject liquidity and slash rates could positively impact the globe. Due to the increasing global liquidity, Bitcoin could benefit from a more accommodative monetary policy from China, Japan, and the United States.
Moreover, Bitcoin may find support from the weakening USD index (DXY). As the greenback weakens, other economies, including those in Europe, may choose to support their economies further.
The move, in turn, would see capital flow to hard assets like Bitcoin. Already, gold is trending at near all-time highs, and Bitcoin could follow the yellow metal as investors buy them to protect themselves from high inflation.
The analyst also pointed out other developments, including the United States approving the application by BlackRock to list and permit the trading of Options for IBIT, their spot Bitcoin ETF. Coupled with banks, including BNY Mellon, showing interest in Bitcoin custody, it could mark the start of fund managers accepting BTC on behalf of their clients.
Feature image from Canva, chart from TradingView
The City of Vancouver has released its Human Rights Framework ahead of the FIFA World…
Few market watchers would have predicted how much volatility markets would have seen at the…
Moscow condemned the action of the Czech police, calling the detainment a ‘provocation’.Published On 25…
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure A crypto…
The impending “super El Niño” will send global temperatures rising, but is also expected to…
Ontario Premier Doug Ford says “no one is more ticked off” than him about the…