- June 6, 2024
- Posted by: [email protected]
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Michael Novogratz, CEO of Galaxy Digital, made a daring prediction that Bitcoin may reach $100,000 by the end of the year, electrifying the cryptocurrency space. During an interview with Bloomberg Television, Novogratz expressed confidence that a swift rise to $73,000 in the coming weeks could set the stage for Bitcoin to achieve this landmark price. He attributes this optimism to recent favorable developments in the U.S. political landscape for digital assets.
Bitcoin has been showing strong performance lately, inching closer to its previous highs. Recently, Bitcoin reached $71,005, marking its highest point in about two weeks and representing a 2.8% increase. This rally brings it closer to its all-time high of $73,798 recorded in March, signaling robust market momentum.
Several key factors underpin this upward trajectory. Notably, the U.S. Securities and Exchange Commission (SEC) is progressing towards approving exchange-traded funds (ETFs) that invest directly in Ether. This move is seen as a significant step towards mainstream acceptance of digital currencies, potentially boosting investor confidence in the broader cryptocurrency market.
Political engagement in the crypto sector is also on the rise. Significant donations are flowing to pro-crypto political candidates, and presidential contenders are increasingly vocal about their support for cryptocurrency-friendly policies. This growing political backing could lead to more favorable regulatory environments, further bolstering the market.
Despite some challenges, such as President Joe Biden’s veto of a resolution aimed at eliminating restrictive SEC guidance, the overall regulatory landscape for cryptocurrencies is becoming clearer. For instance, banks have criticized the SEC’s staff accounting bulletin No. 121 for its costly implications, which they argue impede their ability to expand digital asset services. Nonetheless, these evolving regulations suggest a trend towards a more supportive environment for Bitcoin and other cryptocurrencies.
Currently, Bitcoin is trading at $71,000, up 0.48% on the four-hour chart. While the outlook remains cautious, with bearish predictions persisting unless BTC surpasses a crucial technical level at $70,600, key resistance levels are identified at $71,350, $71,950, and $72,600. Immediate support levels are at $69,700, $68,750, and $67,600.
Technical indicators point to a potential correction. The Relative Strength Index (RSI) stands at 70, indicating overbought conditions, while the 50-Day Exponential Moving Average (EMA) at $68,800 provides significant support. Bitcoin recently broke out of an asymmetrical triangle pattern, moving bullishly past the major hurdle at $70,000. However, it now faces major resistance around $71,500. Candle formations below this level could signal a bearish correction, particularly with the RSI showing buyer exhaustion.
If Bitcoin falls below $70,600, the price could drop to $69,600 or lower. Conversely, maintaining above this level could sustain the bullish trend, keeping Novogratz’s ambitious $100,000 prediction within reach. The coming weeks will be crucial in determining whether Bitcoin can achieve this significant milestone, as market dynamics and regulatory developments continue to evolve.
