Bitcoin To Bounce Back? Analyst Predicts $90,000 After $58K Drop
July 04 2024 - 8:30AM
NEWSBTC
The recent dip in Bitcoin (BTC) might be a temporary hiccup,
according to Lark Davis, a popular crypto analyst. Davis is calling
for a significant upswing in Bitcoin’s value in the coming weeks,
with a target of $90,000 by year’s end. This optimistic outlook
comes amidst a wave of optimism surrounding institutional
investment and the potential arrival of Bitcoin exchange-traded
funds (ETFs). Related Reading: Ethereum DApps On Fire: Volume Soars
Over 90% — Good For ETH Price? Institutional Investors Set To
Supercharge The Market Davis believes a surge of institutional
money is poised to enter the crypto market, acting as a major
catalyst for the predicted rally. He points to Standard Chartered
Bank’s projection of Bitcoin reaching a staggering $100,000 by
August as a sign of growing institutional confidence. While he
offers a slightly more conservative prediction of $90,000, his
focus lies on the long-term impact of this institutional influx.
The arrival of Bitcoin ETFs is another factor fueling Davis’s
bullish sentiment. These investment vehicles would allow
traditional investors to gain exposure to Bitcoin without the
complexities of directly acquiring and storing the cryptocurrency.
Davis argues that the ease of access offered by ETFs could attract
a significant amount of new capital, further propelling Bitcoin’s
price upwards. Beyond Bitcoin: A Banner Year For Altcoins? Davis’s
bullish outlook extends beyond Bitcoin, encompassing a significant
portion of the altcoin market. He anticipates a substantial influx
of capital into Ethereum (ETH) on the heels of upcoming spot ETFs.
Solana (SOL) is another coin on Davis’s radar, with its position as
a leader in blockchain development and market momentum making it a
strong contender for growth. Technical Hurdles Remain: Can The
Bulls Break Through? While Davis’s predictions paint a rosy
picture, technical indicators suggest there might be some
resistance to overcome before the party starts. The recent price
rejection at the $63,956 level and bearish signals from technical
indicators like the Relative Strength Index (RSI) suggest there
could be some short-term headwinds. Related Reading: Bitcoin
Examined: These Critical Points Are ‘Very Bad’ For BTC, Analyst
Says However, Davis remains optimistic. If Bitcoin can overcome the
$72,000 resistance level, a Q4 bull run could be triggered,
potentially sending shockwaves through the entire crypto market. A
Climb Or A Cliffhanger? Meanwhile, NewsBTC’s analysis of
Glassnode’s data reveals an increase in BTC’s new addresses,
potentially indicating a rise in user interest. For the bulls to
charge forward, a daily close above the $63,950 resistance level is
crucial. This could trigger a 5% rise and a retest of the $67,140
weekly resistance. If momentum indicators like the RSI and Awesome
Oscillator turn bullish, an additional 6% rally to $71,200, the
weekly resistance, could be on the cards. However, a drop below
$58,300 and a formation of a lower low could signal persisting
bearish sentiment, potentially leading to a 3% decline and a
revisit of the May low of $56,520. Featured image from Getty
Images, chart from TradingView
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