Bitcoin has recently crossed the significant milestone of $100,000, sparking widespread speculation about the start of a new bull market. In an insightful discussion with David Lin, Gareth Soloway, the Chief Market Strategist of Verified Investing, delves into this remarkable surge and its intricate connection to broader market dynamics. As Bitcoin continues its upward trajectory, Soloway emphasizes the critical link between Bitcoin and stock market performance, advising traders to remain vigilant for potential market corrections.
The Next Bitcoin Target: $107K-$108K
Soloway identifies the next major resistance for Bitcoin to be in the range of $107,000 to $108,000. Current market charts indicate that Bitcoin is adhering to a parallel trend, where prices tend to rebound upon reaching the lower spectrum of this range. Soloway cautions that upon hitting the $107K-$108K level, Bitcoin might experience a substantial correction, an event traders should be prepared for.
Long-Term View: Support and Buying Opportunities
Analyzing Bitcoin’s broader market trends, Soloway explains that historical price cycles reveal a pattern where previous cycle highs often transform into support in subsequent cycles. He suggests that should Bitcoin retreat to the $74,000 to $75,000 range, it could present a lucrative buying opportunity for those looking to capitalize on the next price surge.
Understanding Bitcoin’s Volatility
The volatility in Bitcoin’s price is significantly influenced by psychological factors. Reaching pivotal price points, such as the $100K milestone, often triggers a buying frenzy as traders fear missing out on further gains. However, once these levels are breached and traders have invested, the market frequently undergoes a pullback. This phenomenon was evident when Bitcoin momentarily reached $104K before declining to $92K, highlighting the scarcity of buyers at these elevated levels.
Next Steps for Bitcoin
The journey of Bitcoin towards $100K has ignited numerous discussions regarding its future trajectory. While further upward movement is conceivable, a correction may be imminent, particularly as Bitcoin nears critical resistance thresholds. Despite potential short-term corrections, Bitcoin’s long-term outlook remains optimistic, with many traders eager to seize buying opportunities during market dips, particularly if Bitcoin revisits the $74K-$75K range.
