Analyst Points Out Key Factor That Will Drive Bitcoin to $100,000
A renowned cryptocurrency strategist believes that Bitcoin (BTC) is about to take off and head towards a new all-time high after surpassing a crucial level.
Cryptocurrency analyst Kevin Svenson said that once Bitcoin turns an important 2021 price level into support, the leading cryptocurrency will likely kickstart a major bullish rally that could take the asset to $100,000.
"The next most critical point will be to surpass this zone [between approximately $29,000 and $32,000] from 2021, a significant support, break it, and confirm it as the new support level. When we achieve that, it will be time to become very optimistic. Until then, we are still in a gray area," he said.
According to him, once this $32,000 level is breached and becomes strong support, we will never be able to buy BTC below this value again, as the asset will begin a new all-time high.
"But as soon as we turn this into a new support, that's when I'll be extremely confident in the market again. And that's when I would expect a trend toward new all-time highs to occur because once we're above this range, the game will begin. At that point, all of this will become an accumulation zone once we surpass it," he said.
Cryptocurrencies Start the Month on the Right Foot Bitcoin's Future However, the analyst warns that Bitcoin could enter a bearish scenario if the market momentum falls more than he anticipates.
According to him, the recent recovery movement did not come with increased market liquidity, meaning there was no new money entering, and this could result in just a momentum-driven rally.
Furthermore, he points out that the Bitcoin price chart has been forming a classic head and shoulders pattern. Therefore, according to this pattern, a decline is expected soon if the bulls take control of the asset.
The market is currently directionless. In fact, there isn't much of a trend. We are trading sideways. This is something that harms sentiment and can cause a lack of momentum and interest and, therefore, a drop," he noted.
#bitcoin #BTC
A renowned cryptocurrency strategist believes that Bitcoin (BTC) is about to take off and head towards a new all-time high after surpassing a crucial level.
Cryptocurrency analyst Kevin Svenson said that once Bitcoin turns an important 2021 price level into support, the leading cryptocurrency will likely kickstart a major bullish rally that could take the asset to $100,000.
"The next most critical point will be to surpass this zone [between approximately $29,000 and $32,000] from 2021, a significant support, break it, and confirm it as the new support level. When we achieve that, it will be time to become very optimistic. Until then, we are still in a gray area," he said.
According to him, once this $32,000 level is breached and becomes strong support, we will never be able to buy BTC below this value again, as the asset will begin a new all-time high.
"But as soon as we turn this into a new support, that's when I'll be extremely confident in the market again. And that's when I would expect a trend toward new all-time highs to occur because once we're above this range, the game will begin. At that point, all of this will become an accumulation zone once we surpass it," he said.
Cryptocurrencies Start the Month on the Right Foot Bitcoin's Future However, the analyst warns that Bitcoin could enter a bearish scenario if the market momentum falls more than he anticipates.
According to him, the recent recovery movement did not come with increased market liquidity, meaning there was no new money entering, and this could result in just a momentum-driven rally.
Furthermore, he points out that the Bitcoin price chart has been forming a classic head and shoulders pattern. Therefore, according to this pattern, a decline is expected soon if the bulls take control of the asset.
The market is currently directionless. In fact, there isn't much of a trend. We are trading sideways. This is something that harms sentiment and can cause a lack of momentum and interest and, therefore, a drop," he noted.
#bitcoin #BTC