Bitcoin’s recent ascent to the $100K milestone has ignited a flurry of speculation about the onset of a new bull run. Gareth Soloway, the Chief Market Strategist at Verified Investing, recently shared insights on this development and its correlation with broader market trends in a conversation with David Lin. Despite Bitcoin’s impressive rise, Soloway emphasized the cryptocurrency’s strong link to stock market dynamics. When the stock market experiences downturns, Bitcoin often mirrors this trend, prompting traders to remain vigilant for potential setbacks.
The Next Bitcoin Target: $107K-$108K
Soloway identifies Bitcoin’s next significant resistance point between $107,000 and $108,000. Current market charts suggest Bitcoin is adhering to a parallel trend, where its price tends to rebound upon reaching the lower end of its range. Soloway anticipates that once Bitcoin hits the $107K-$108K mark, a substantial correction could occur, warranting close observation.
Long-Term View: Support and Buying Opportunities
Examining Bitcoin’s broader trajectory, Soloway notes that historical price cycles reveal a pattern where previous cycle highs frequently transform into support levels in subsequent cycles. He proposes that if Bitcoin retreats to the $74,000 to $75,000 zone, it could present a prime buying opportunity for the next upward surge.
Understanding Bitcoin’s Volatility
Bitcoin’s notorious price volatility is partially influenced by psychological factors. When Bitcoin achieves crucial milestones, such as the $100K level, many traders are driven by the fear of missing out on further gains, leading to a buying frenzy. However, once this influx of traders enters the market, pullbacks can occur, as illustrated by Bitcoin’s recent descent from $104K to $92K. Such abrupt declines often stem from a scarcity of buyers below critical levels.
Next Steps for Bitcoin
Bitcoin’s path toward the $100K threshold has raised numerous questions regarding its future trajectory. While there is potential for continued upward movement, a correction may be imminent, particularly as Bitcoin nears key resistance levels. Despite this, Bitcoin’s long-term trend remains bullish, with many traders poised to purchase during corrections, especially if Bitcoin falls to the $74K-$75K range.
