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Analyst Says Bitcoin Won’t Fall Below $100,000 In Next Crypto Winter

  • February 12, 2024

One analyst is confident that Bitcoin (BTC) will be more resilient than ever in future crashes. Taking to X, the analyst said that the world’s most valuable coin will not fall below $100,000 in the next crypto winter.

Bitcoin Will Be More Resilient In The Future

This optimistic outlook hinges on a key factor: the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). This product, the analyst said, represents a significant shift, introducing a “permanent institutional bid” for Bitcoin.

With Wall Street now open to diversifying into Bitcoin, aiming to ride the trend, the stream of institutional demand would make the coin more robust even if prices overheat in the future.

The analyst argues that this “permanent” demand is a powerful buffer against price drops. While future bear markets are inevitable, the presence of institutional buyers will reduce the severity and duration of these downturns.

Accordingly, the analyst expects future corrections to be relatively shallow and recoveries stronger and quicker. BTC’s losses were more profound in the past, and recoveries were weaker due to low liquidity.

Bitcoin price trending higher on the daily chart| Source: BTCUSDT on Binance, TradingView
Bitcoin price trending higher on the daily chart| Source: BTCUSDT on Binance, TradingView

This prediction is when Bitcoin is trending higher, looking at the performance in the daily chart. So far, the coin is at around January 2024 highs and will likely extend gains. Looking at the candlestick arrangement, the immediate psychological resistance is $50,000.

If bulls anchor on the recent leg up, BTC prices may breach this reaction point, initiating a run that may see BTC float to November 2021 highs 2021.

Will BTC Breach $70,000 In 2024?

Though the analyst is bullish, it is not immediately clear if Bitcoin would even have the momentum to breach $70,000 and rally to new territory above $100,000. Even so, more analysts and investors, including Arthur Hayes, the co-founder of BitMEX, remain bullish.

Related Reading: Crypto Drama Unfolds: Ethereum Co-Founder’s 22,000 ETH Transfer Sparks Price Speculation

According to Hayes, monetary policy decisions made by the United States Federal Reserve (Fed) will shape and determine the market liquidity level and, thus, the speed of the BTC uptrend. The Fed is expected to slash its interest rate from the current 5.50% level to a new level in March. 

If the central bank continues to tighten, defying economists’ forecasts and mopping up liquidity from the market, Bitcoin might suffer as it did in 2022. However, with Wall Street involved and more capital flowing to Bitcoin, future corrections, even if prices are still below all-time highs, might not be as brutal as before.

Feature image from DALLE, chart from TradingView

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.


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