One analyst believes Bitcoin (BTC) is more resilient than ever to future crashes.Talk to analyst girlfriend X Said The world's most valuable coin will not fall below $100,000 in the next crypto winter.
Bitcoin will become more resilient in the future
This optimistic outlook rests on important factors. That is the recent approval of the Spot Bitcoin Exchange Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC). The analyst said the product represents a major change by introducing “permanent institutional bidding” for Bitcoin.
Wall Street is currently aggressively diversifying into Bitcoin, aiming to ride this trend, and even if prices overheat in the future, demand flow from institutional investors will make Bitcoin more robust. It will be.
Analysts argue that this “permanent” demand is a strong buffer against falling prices. Although future bear markets are inevitable, the presence of institutional investors will reduce the severity and duration of these downturns.
Therefore, analysts expect future corrections to be relatively shallow and the recovery to be stronger and faster. BTC losses have been larger in the past, and recovery has been weaker due to low liquidity.
This prediction is when Bitcoin is in an uptrend by looking at its daily chart performance. So far, the coin is near its January 2024 high and will likely extend the rally. Looking at the candlestick placement, the immediate psychological resistance is he $50,000.
If the bulls anchor on the recent rally, BTC price could break through this reaction point and begin a rally that could take BTC all the way to November 2021 highs.
Will BTC break above $70,000 in 2024?
Although the analyst is bullish, it is not immediately clear whether Bitcoin has the momentum to break above $70,000 and into new territory above $100,000. Still, more analysts and investors remain bullish, including BitMEX co-founder Arthur Hayes.
Related article: Cryptocurrency drama unfolds: Ethereum co-founder's 22,000 ETH transfer sparks price speculation
According to Hayes, monetary policy decisions made by the US Federal Reserve will shape and determine the level of liquidity in the market, which in turn will determine the speed of BTC's upward trend. The Fed is expected to lower interest rates from the current 5.50% level to a new level in March.
Bitcoin could suffer just as it did in 2022 if central banks ignore economists' expectations and continue tightening, sucking liquidity from the market. However, as Wall Street gets involved and more money flows into Bitcoin, a correction will likely occur in the future, even if the price is still rising. We're below all-time highs, but maybe not as brutal as before.
Featured image from DALLE, chart from TradingView
