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.
According to Soloway, investors should scrutinize liquidity “like a hawk,” highlighting the potential impact of systemic changes in liquidity on Bitcoin’s trajectory.
Soloway pointed to the Federal Reserve’s dilemma in managing monetary policy amid record-high markets and approximately 3% inflation. He emphasized that the Fed’s reluctance to cut rates aggressively 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
However, Soloway cautioned against expecting a repeat of the frenzied market behavior witnessed in 2021 and 2017. He viewed this relative calmness despite Bitcoin’s rally as a positive sign, suggesting that extreme market enthusiasm usually precedes a market top.
Looking ahead, Soloway highlighted Bitcoin’s restricted supply of 21 million coins and the upcoming halving event as pivotal bullish factors for the cryptocurrency. He emphasized that the halving event alone does not guarantee a Bitcoin rally to $100,000 in 2024.
Nonetheless, Soloway acknowledged a short-term bearish scenario while urging caution and emphasized 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 bare case that there is is that that you will have some sort of correction at some point, and the question is how much does Bitcoin get driven down,” he added.
It’s worth noting Bitcoin’s ongoing rally saw the maiden cryptocurrency briefly hit $64,000, but the asset has since faced resistance in mounting a rally toward a new all-time high. Despite the resistance, Soloway expressed optimism about Bitcoin’s long-term prospects, describing it as a risk asset currently but envisioning its evolution into a store of value.
In the meantime, Bitcoin was trading at $62,276 by press time, having gained over 20% in the last seven days.
This news is republished from another source.
