Analyst Predicts BTC Will Stay Above $100K Next Year
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As the price of Bitcoin (BTC) approaches the $100,000 milestone, there is a noticeable sense of optimism across the cryptocurrency landscape. After a rally that brought Bitcoin close to $97,800 last week, it has since dropped to around $94,340, showing a slight decline of 0.4% in the last 24 hours, based on CoinGecko’s data.
This follows a sharp sell-off in April, when Bitcoin fell to a low of $74,000. Nevertheless, renewed optimism for a new peak is emerging among market participants and analysts.
Increasing Bullish Sentiment
The positive outlook for Bitcoin has been further reinforced by crypto analyst Doctor Profit, who believes that the cryptocurrency is on a strong upward path. He confidently asserts that in a year, Bitcoin is unlikely to dip below the $100,000 mark again.
Last week, Doctor Profit mentioned that Bitcoin has risen by over 25% since his initial point of $77,000. He identified a crucial breakout above the “Hammer Line,” a significant resistance point he had noted around $85,000, claiming that this breakout would facilitate additional gains.
Further Insights
A key driver for this recent rise, as per the analyst, has been the proactive accumulation of Bitcoin by exchange-traded funds (ETFs) in the USA.
On the past Tuesday, these ETFs experienced nearly $1 billion in net inflows, marking one of the year’s highest daily figures. Over the course of just three trading days, an impressive $1.4 billion has been invested into Bitcoin ETFs, indicating robust institutional interest amid market volatility.
Compounding this positive sentiment, Bitcoin’s liquid supply is declining rapidly. Recent days have witnessed a notable reduction in exchange reserves, with large buyers withdrawing coins from centralized exchanges for secure storage in cold wallets.
Reports from over-the-counter (OTC) desks indicate low supply levels, suggesting significant accumulation is occurring behind the scenes. Even major financial institutions like Fidelity have cautioned about an impending Bitcoin supply shock, further heightening investor interest.
Is $100,000 Within Reach?
Doctor Profit also pointed to a significant development not only for Bitcoin but for the entire digital asset market as Binance recently revealed that it has received inquiries from several governments globally regarding their strategic Bitcoin reserves.
This indicates an increasing recognition among sovereign nations of Bitcoin’s potential as a strategic asset, similar to that of gold. As countries consider their own Bitcoin reserves, discussions about market availability and the repercussions of a supply shock arise.
Further Insights
Looking forward, the analyst exhibits a positive outlook on Bitcoin’s path. With its recent momentum and the breakout above the Hammer Line, achieving the $100,000 target seems increasingly plausible.
Doctor Profit maintains his prior analysis and anticipates that the upcoming Federal Open Market Committee (FOMC) meeting this week will further impact market dynamics. He remains confident that Bitcoin could not only hit $100,000 but also reach a new all-time high in the weeks ahead.
Featured image from DALL-E, chart from TradingView.com
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