Market speculators predict Bitcoin is headed to rise above $70K in the coming weeks, potentially surpassing its all-time high achieved in March. There’s increasing optimism surrounding the king of cryptocurrencies as investors gear up for the November US presidential elections.
After several months of price consolidation so far this year, Zerocap CIO Jonathan de Wet believes the stage is set for a surge in global liquidity, leading to a perfect storm in favour of BTC. De Wet pointed out that the digital asset currently trading at above $68,376 could be evidence that Bitcoin is headed to $70K, including the possibility of breaking the $74,000 all-time high it achieved in March.
Coincides with a Global Liquidity Breach
According to Brett Munster of Blockforce Capital, the ongoing upward momentum in Bitcoin could be attributed to increased global liquidity, especially from China, where several stimulus measures have been employed to try and revive the economy.
Munster averred that the decision by central banks to inject cheap capital into their respective economies has positively affected global liquidity. He pointed out that any upward momentum in Bitcoin in the past had coincided with the times when global liquidity breached its moving average.
On the political front, US Democratic Party candidate Kamala Harris’s decision to pledge support for developing a clear regulatory framework for crypto may also be a factor as Bitcoin is headed to surpass $70K. The new development follows years of people within the crypto industry piling pressure on US authorities to regulate digital assets forcefully instead of leading from the front with regulatory clarity. The Republican Party Candidate, former President Donald Trump, has been seeking the crypto community’s support in addition to launching numerous crypto-related initiatives.
A Decrease in Selling Pressure
Further evidence that Bitcoin could surpass $70K accrues from the fact that the price has recently surged above $68,000, leading to liquidations of over $300 million within the last 24 hours. According to ETC Group’s Crypto Asset Sentiment Index, the rise in liquidation could be attributed to a decrease in selling pressure, enabling the crypto asset to gain at least 4% in the last 24 hours to surpass the crucial $68,000 threshold.
A report published by the ETC Group earlier this week revealed a stabilization of net outflows in BTC has added to upward momentum in Bitcoin, which could have eased the pressure. The report credited the return of risk appetite to MicroStrategy as “reaching a new performance peak,” contributing to the upward momentum in Bitcoin.
The possibility that Bitcoin is headed to $70K is also buoyed by the asset’s overall macroeconomic momentum, which points towards a favourable potential for a rise. The current net realized profit/loss indicator has consistently shown a slowdown in profit booking in the last few weeks.
The shift is another indicator of reduced selling pressure, giving Bitcoin headed to $70K sufficient breathing space to stage a comeback. The emerging balanced market is likely to be beneficial to Bitcoin, considering that reduced profit-taking creates a more stable price environment and enhances the chances of recovery. Moreover, the emerging institutional demand resulting from the introduction of Bitcoin ETFs could make a track for a price surge for the asset.
Conclusion
The combination of technical, economic, and political factors has created a positive interplay that makes most experts believe that Bitcoin is headed to rise above $70K in the coming weeks. Other challenges, such as the unpredictable economic situation in China and other geopolitical conflicts, could exert pressure to challenge the ongoing upward momentum in Bitcoin. Still, the more significant cryptocurrency market remains optimistic.
Should the current momentum persist, a favorable regulatory environment materializes, and there’s every chance that Bitcoin could break its past ceilings and set the stage for another breakout. While these factors suggest the possibilities of a price rise, steady growth support in the coming weeks and the potential of increased institutional investment will play a crucial role as Bitcoin is headed to rise over $70K.
