Bitcoin has been making headlines recently as it reached the $100K mark, sparking discussions about its potential for a price surge to $108K. Gareth Soloway, Chief Market Strategist of Verified Investing, shared his insights on the current market trends in a recent interview with David Lin. Soloway highlighted the close correlation between Bitcoin and the stock market, emphasizing the need for traders to stay vigilant for potential pullbacks.
According to Soloway, Bitcoin’s next major resistance level is expected to be between $107,000 and $108,000. Analyzing the current chart, he pointed out a parallel trend where the price tends to bounce when it reaches the lower end of the range. However, Soloway cautioned that once Bitcoin hits the $107K-$108K level, a larger correction could be on the horizon.
Taking a long-term view, Soloway noted that historical price cycles indicate a pattern where previous highs often become support levels in subsequent cycles. He suggested that if Bitcoin were to pull back to the $74,000 to $75,000 range, it could present a favorable buying opportunity for the next upward movement.
The volatility of Bitcoin’s price is influenced by various psychological factors. As the cryptocurrency reaches significant levels like $100K, a frenzy of traders may rush in to avoid missing out on potential gains. However, once these traders have entered the market, a pullback can occur, as evidenced by a recent drop from $104K to $92K due to a lack of buyers below key levels.
Looking ahead, Bitcoin’s journey towards $100K has raised speculation about its future trajectory. While further upward movement is possible, a correction could be imminent as it approaches critical resistance levels. With the long-term trend of Bitcoin still bullish, traders are eyeing opportunities to buy during corrections, particularly if Bitcoin dips to the $74K-$75K range.
As the cryptocurrency market continues to evolve, staying informed about key price levels and market trends is essential for making informed trading decisions. Bitcoin’s price surge to $108K holds promise for investors, but a potential dip to $74K may follow, presenting opportunities for strategic buying in the market.