Bitcoin recently hit the $100K mark, and many are wondering if this is the start of a new bull run. Gareth Soloway, Chief Market Strategist of Verified Investing, discussed the recent surge and its connection to broader market trends in an interview with David Lin. While Bitcoin has been rising, Soloway said that it is closely tied to the performance of the stock market. When the stock market drops, Bitcoin often follows, so traders should stay alert for potential 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, where the price tends to bounce when it hits the lower end of the range. Soloway believes that once Bitcoin reaches the $107K-$108K level, a larger correction could occur, which is something to watch out for.
Long-Term View: Support and Buying Opportunities
Looking at Bitcoin’s larger trend, Soloway said that past price cycles show a pattern where the highs of previous cycles tend to become support in the next one. He suggests that if Bitcoin pulls back to the $74,000 to $75,000 range, this could be a great opportunity to buy for the next upward movement.
Understanding Bitcoin’s Volatility
Bitcoin’s price volatility is partly driven by psychological factors. When Bitcoin reaches key levels, like the $100K mark, many traders rush in out of fear of missing out on further gains. However, once these traders have bought in, the market can experience a pullback, as seen recently when Bitcoin briefly hit $104K before dropping to $92K. This sudden drop is often a result of a lack of buyers below key levels.
Next Steps for Bitcoin
Bitcoin’s journey towards $100K has sparked many questions about its future. While it’s possible that Bitcoin may see further upward movement, there could be a correction in the near future, especially as it approaches key resistance levels. With Bitcoin’s long-term trend still bullish, many traders are looking to buy during corrections, especially if Bitcoin drops to the $74K-$75K range.
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