After Bitcoin (BTC) hit its most recent all-time high of nearly $69,000, a significant portion of the market is increasingly eyeing $100,000 as the next potential milestone for the premier cryptocurrency.
With Bitcoin currently trading above the $60,000 support zone, discussions about the $100,000 target have resurfaced, with some market participants predicting that milestone could be reached in 2024.
In this context, crypto trading analyst Gareth Soloway has identified a crucial catalyst that could take Bitcoin to the target mark. In an interview with David Lin published on March 2, Soloway emphasized the importance of monitoring market liquidity and suggested that a rise could favor Bitcoin.
According to Soloway, investors should examine liquidity “like a hawk,” highlighting the potential impact of systemic changes in liquidity on Bitcoin’s performance.
Soloway pointed to the Federal Reserve's dilemma in managing monetary policy amid record-high markets and inflation hovering around 3%. He emphasized that the Fed's reluctance to aggressively cut interest rates could maintain high inflation and potentially reinforce Bitcoin's bullish trend.
“If we see an increase in liquidity in the system, that is absolutely questionable [Bitcoin to $100,000 in 2024]. Any increase in liquidity with markets at all-time highs doesn't really allow the Fed to maneuver because it will keep inflation high. <…> It's about liquidity in the system. Watch it like a hawk,” he said.
Advantages of market calm
However, Soloway cautioned against expecting a repeat of the frantic market behavior of 2021 and 2017. He viewed this relative calm as a positive sign despite Bitcoin's rally, suggesting that a market top is usually preceded by extreme market enthusiasm.
Looking ahead, Soloway highlighted Bitcoin's limited supply of 21 million coins and the upcoming halving as key bullish factors for the cryptocurrency. He emphasized that the halving event alone is not a guarantee of Bitcoin rising to $100,000 in 2024.
Still, Soloway acknowledged a short-term downside scenario but urged caution and emphasized monitoring Bitcoin's price movements, especially near key resistance levels such as the 2021 high pivot at $65,000 and $69,000.
“My biggest fear with Bitcoin, and this is the only case there is, is that there will be a correction at some point and the question is how much Bitcoin will go down,” he added.
It is worth noting that Bitcoin's ongoing rally saw the first cryptocurrency briefly reach $64,000, but the asset has since faced resistance as it began a rally towards a new all-time high. Despite the resistance, Soloway expressed optimism about Bitcoin's long-term prospects, describing it as a risk asset for now but anticipating its evolution into a store of value.
Meanwhile, Bitcoin was trading at $62,276 at press time, having gained over 20% in the past seven days.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.