Is Bitcoin on Track to Reach $100,000 in 2024? Analyst Identifies Crucial Catalyst
After Bitcoin (BTC) reached its last all-time high of nearly $69,000, a significant portion of the market has increasingly viewed the $100,000 level as the next potential milestone for the maiden cryptocurrency. With Bitcoin presently trading above the $60,000 support zone, discussions surrounding the $100,000 target have resurfaced, with some market participants projecting that this milestone could be achieved in 2024.
In this context, crypto trading analyst Gareth Soloway has identified a crucial catalyst that could propel Bitcoin to the targeted mark. During an interview with David Lin published on March 2, Soloway stressed the importance of monitoring market liquidity, suggesting that an increase might favor Bitcoin.
The Importance of Market Liquidity
Soloway believes that investors should scrutinize liquidity “like a hawk” and pay attention to systemic changes that could impact Bitcoin’s trajectory. He specifically pointed to the Federal Reserve’s dilemma in managing monetary policy amid record-high markets and approximately 3% inflation. According to Soloway, the Fed’s reluctance to aggressively cut rates could sustain high inflation, potentially bolstering Bitcoin’s upward trend.
“If we see an increase in liquidity in the system, it absolutely is on the table [Bitcoin to $100,000 in 2024]. Any sort of increase in liquidity with markets at all-time highs doesn’t allow the Fed to really maneuver because it’s going to keep inflation high… It’s all about that liquidity in the system. Watch it like a hawk,” he said.
Benefits of Market Calmness
While Soloway does not expect a repeat of the frenzied market behavior witnessed in 2021 and 2017, he views the relative calmness despite Bitcoin’s rally as a positive sign. Extreme market enthusiasm usually precedes a market top, so the current stability suggests that Bitcoin may still have room to grow.
Soloway also highlighted two bullish factors for Bitcoin: its restricted supply of 21 million coins and the upcoming halving event. However, he emphasized that the halving event alone does not guarantee a Bitcoin rally to $100,000 in 2024. He urged caution and advised monitoring Bitcoin’s price movements, particularly around key resistance levels such as the 2021 high pivot at $65,000 and $69,000.
“My biggest fear for Bitcoin, and this is the only bear case that there is, is that you will have some sort of correction at some point, and the question is how much does Bitcoin get driven down,” he added.
Bitcoin’s Long-Term Prospects
Despite facing resistance in mounting a rally toward a new all-time high, Soloway remains optimistic about Bitcoin’s long-term prospects. He describes it as a risk asset currently but envisions its evolution into a store of value.
As of now, Bitcoin is trading at $62,276 and has gained over 20% in the last seven days.
🔥Hot Take: Will Bitcoin Reach $100k by 2024?
The possibility of Bitcoin reaching $100,000 by 2024 remains an ongoing topic of discussion in the crypto market. Gareth Soloway, a crypto trading analyst, believes that monitoring market liquidity is crucial in determining Bitcoin’s trajectory. He suggests that an increase in liquidity could favor Bitcoin and potentially push it towards the targeted mark. However, Soloway cautions against expecting a repeat of the frenzied market behavior witnessed in the past. He views Bitcoin’s relative calmness as a positive sign and highlights its restricted supply and upcoming halving event as bullish factors. While cautioning about potential short-term bearish scenarios, Soloway remains optimistic about Bitcoin’s long-term prospects. As the cryptocurrency continues to face resistance on its path towards a new all-time high, it is worth monitoring its price movements around key resistance levels.
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