4 July 2024
The recent dip in Bitcoin (BTC) might be a temporary hiccup, according to Lark Davis, a popular crypto analyst. Davis is calling for a significant upswing in Bitcoin’s value in the coming weeks, with a target of $90,000 by year’s end. This optimistic outlook comes amidst a wave of optimism surrounding institutional investment and the potential arrival of Bitcoin exchange-traded funds (ETFs).
Institutional Investors Set To Supercharge The Market
Davis believes a surge of institutional money is poised to enter the crypto market, acting as a major catalyst for the predicted rally. He points to Standard Chartered Bank’s projection of Bitcoin reaching a staggering $100,000 by August as a sign of growing institutional confidence. While he offers a slightly more conservative prediction of $90,000, his focus lies on the long-term impact of this institutional influx.
The arrival of Bitcoin ETFs is another factor fueling Davis’s bullish sentiment. These investment vehicles would allow traditional investors to gain exposure to Bitcoin without the complexities of directly acquiring and storing the cryptocurrency. Davis argues that the ease of access offered by ETFs could attract a significant amount of new capital, further propelling Bitcoin’s price upwards.
Beyond Bitcoin: A Banner Year For Altcoins?
Davis’s bullish outlook extends beyond Bitcoin, encompassing a significant portion of the altcoin market. He anticipates a substantial influx of capital into Ethereum (ETH) on the heels of upcoming spot ETFs. Solana (SOL) is another coin on Davis’s radar, with its position as a leader in blockchain development and market momentum making it a strong contender for growth.
Technical Hurdles Remain: Can The Bulls Break Through?
While Davis’s predictions paint a rosy picture, technical indicators suggest there might be some resistance to overcome before the party starts. The recent price rejection at the $63,956 level and bearish signals from technical indicators like the Relative Strength Index (RSI) suggest there could be some short-term headwinds.
However, Davis remains optimistic. If Bitcoin can overcome the $72,000 resistance level, a Q4 bull run could be triggered, potentially sending shockwaves through the entire crypto market.
A Climb Or A Cliffhanger?
Meanwhile, NewsBTC’s analysis of Glassnode’s data reveals an increase in BTC’s new addresses, potentially indicating a rise in user interest. For the bulls to charge forward, a daily close above the $63,950 resistance level is crucial. This could trigger a 5% rise and a retest of the $67,140 weekly resistance.
If momentum indicators like the RSI and Awesome Oscillator turn bullish, an additional 6% rally to $71,200, the weekly resistance, could be on the cards.
However, a drop below $58,300 and a formation of a lower low could signal persisting bearish sentiment, potentially leading to a 3% decline and a revisit of the May low of $56,520.
Featured image from Getty Images, chart from TradingView