Bitcoin
Bitcoin’s arrival at US$100,000: understanding the scenarios of a ‘brief upheaval’ before the ‘big breakout’
Sheldon Analyst accessed the Crypto Banter channel and noted that Bitcoin’s price at $71,000 is a sign of a strong market resurgence. Despite slight concerns in the stock market, it held up well, leading to positive momentum in Bitcoin. The interesting aspect now is the potential squeeze on altcoins.
He highlighted that Bitcoin has started the squeeze, with the crucial barrier being the $72,000 mark. This indicates a potential advance from all-time highs, signaling the beginning of the optimism phase in the higher time periods of the market cycle.
The analyst explained that a strong resistance level was around $65,000, now moving towards approximately $72,000. This indicates that a significant squeeze in selling could occur, potentially causing the market to rise if Bitcoin reaches its all-time high. Currently, Bitcoin is hovering around $71,000 to $72,000, suggesting a major resistance zone. This means that while it may take some time to reach $72,000 to $73,000, a breakout could lead to a rapid price increase.
Here are the three potential scenarios explained by the analyst:
Liquidation Trap: There could be a quick upward move to around $76,000, followed by a brief move before continuing higher.
Retraction and Outbreak: Bitcoin may see a small pullback to around $70,000 or $69,500 before rising quickly.
Continuous Rally: There may not be a trap, and Bitcoin may simply surpass its all-time highs, potentially reaching around $84,000 in a few days. The next goal is $100,000, although this is a longer term goal.
Reflecting on past cycles, he observed a similar pattern of brief recessions before entering the optimism phase, explaining the importance of being prepared and entering the market strategically. At the time of writing, Bitcoin is trading slightly above $71K levels.