The post Potential Bitcoin Price Rise to $108,000: Will a Dip to $74,000 Follow? appeared first on Coinpedia Fintech News
Bitcoin recently reached the $100,000 mark and many are wondering if this is the start of a new bull run. Gareth Soloway, chief market strategist at Verified Investing, discussed the recent rise and its connection to broader market trends in an interview with David Lin. While Bitcoin is rising, Soloway says it is closely tied to the performance of the stock market. When the stock market drops, Bitcoin often follows suit, so traders should stay alert for possible pullbacks.
The next Bitcoin target: $107K-$108K
According to Soloway, Bitcoin’s next major resistance is between $107,000 and $108,000. The current chart shows that Bitcoin is following a parallel trend, with the price tending to bounce when it reaches the bottom of the range. Soloway believes that once Bitcoin reaches the $107,000-$108,000 level, a bigger correction could occur, and that is something to watch out for.
Long-term vision: support and purchasing options
Looking at Bitcoin’s larger trend, Soloway said previous price cycles show a pattern where the highs of previous cycles tend to become support in the next. He suggests that if Bitcoin pulls back to the $74,000 to $75,000 range, it could be a great buying opportunity for the next upward move.
Understanding Bitcoin Volatility
Bitcoin’s price volatility is partly determined by psychological factors. When Bitcoin hits key levels such as the $100,000 mark, many traders rush in for fear of missing out on further gains. However, once these traders buy in, the market can experience a pullback, as seen recently when Bitcoin briefly reached $104,000 before falling to $92,000. This sudden drop is often the result of a lack of buyers below key levels.
Next steps for Bitcoin
Bitcoin’s journey to $100,000 has raised many questions about its future. While it is possible that Bitcoin will see further upward movement, a correction could occur in the near future, especially if it approaches key resistance levels. With Bitcoin’s long-term trend still bullish, many traders are looking to buy during corrections, especially if Bitcoin falls to the $74,000-$75,000 range.
Credit : coinpedia.org
