Bitcoin (BTC), on Wednesday, soared past its lower resistance and consolidation levels to reach a new all-time (ATH) high of $112 022.
Bitcoin rally faces critical test
John Glover is the Chief Investment Officer at Ledn, a crypto-lending platform, and was previously Managing Director at Barclays Investment Bank. noted This recent rally seems to be a test of the prior all-time highest set on May 22 which faced selling pressure.
As some investors opted to take profits, notable publicly traded companies, including Trump Media & Technology Group and GameStop, have announced their intentions to purchase Bitcoin to bolster their treasuries.
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Glover said the growing popularity of Bitcoin among publicly-traded companies could have a significant impact on the markets dynamics.
But the future of Bitcoin’s price rally is largely dependent on trade talks and macroeconomic developments. Sid Powell of Maple Crypto Asset Management, the CEO, said that any setback in trade negotiations before Donald Trump’s deadline on August 1, could be a challenge for Bitcoin’s movement.
In the event that trade negotiations are successful and inflation is continuing to decline, then Federal Reserve may consider lowering interest rates. This could support Bitcoin’s upward trend.
Scenarios For A Potential Breakout Toward $130,000
Doctor Profit, a market expert who has recently taken to social media. declaring Bitcoin’s rise is only just beginning. He said confidently, “THE PARTY IS NOT OVER YET,” Predicting that a possible new record high could be reached soon.
It is not a good idea to use the word “you” analysis This cycle’s target range is between $120,000 and $130,000. According to Dr Profit, there are two scenarios that could set the stage for this breakout.
First, Bitcoin will reach the range of $113,000-$114,000, then a correction at $92,000-93,000, aligned with the CME’s gap and a large liquidity pool. If Bitcoin were to rebound quickly from the lower end of this range, it could lead to a quick ascent towards the $120,000 level.
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Bitcoin is expected to continue on its upward trajectory without reverting back to lower levels of liquidity.
This range of $113,000 to 114,000 is crucial, because the reaction from the market to this price will determine the next move in Bitcoin.
BTC has been retracing back to $111,422, in an attempt to use this as a new floor of support for future price increases.
Chart from TradingView.com, image taken from DALLE
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Source: www.newsbtc.com
