Bitcoin could reach a new summit of $ 110,000 before any significant retracement, according to some market analysts, which cite the softening of inflation and the increase in global liquidity as key factors supporting the price rally.
Bitcoin (BTC) has been increasing for two consecutive weeks, reaching a weekly closure increased just above $ 86,000 on March 23, according to tradingView data.
Combined with discoloration of concerns related to inflation, this can open the way to Bitcoin rally at $ 110,000, according to Arthur Hayes, co-founder of Bitmex and director of investments in Maelstrom.
BTC / USD, 1 week graphic. Source: Cointelegraph /Tradingview
Hayes wrote in a post of March 24:
“I bet that $ BTC reaches $ 110,000 before it hates $ 76.5,000. Jaypow told me.
Source: Arthur Hayes
“What I mean is that the price is more likely to reach $ 110,000 than $ 76.5,000 afterwards. If we reach $ 110,000, then it’s Yachtzee time and don’t look back before $ 250,000,” added Hayes in a follow -up post.
The quantitative tightening (QT) is when the American federal reserve reduces its assessment by selling obligations or letting them ripen without reinvesting the product, while quantitative relaxation (QE) means that the Fed buys obligations and pump of money in the economy to reduce interest rates and encourage expenses during difficult financial conditions.
Other analysts have stressed that even if the Fed has slowed the QT, it has not yet completely pivoted for relaxation.
“QT is not” fundamentally finished “on April 1. They still have $ 35 billion / month of titles supported by mortgages. They just slowed down qt of $ 60 billion / month to $ 40 billion / month, “according to Benjamin Cowen, founder and CEO of intothecryptoitverse.
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Meanwhile, market players await the expected Pivot of the Fed to a quantitative relaxation, which has always been positive for the price of Bitcoin.
BTC / USD, 1 week graphic, 2020-2021. Source: Cointelegraph /Tradingview
The latest QE period in 2020 resulted in an increase of more than 1,000% of the Bitcoin price, from $ 6,000 in March 2020 to a summit of $ 69,000 in November 2021. Analysts think that similar configuration could be formed again.
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The macro-waonditions can support Bitcoin rally at $ 110,000
Bitcoin’s resumption of more than $ 85,000 after the meeting of the Federal Open Market Committee last week (FOMC) was an optimistic sign for the feeling of investors who could point out more upwards, according to Manuel Cardozo, market analyst of the real asset tokenization platform (RWA) Brikken.
The macroeconomic environment “also” supports “a Bitcoin rally at $ 110,000, the analyst at Cointelegraph said.
“Global liquidity has increased, discussions around an American Bitcoin Strategic Reserve, potentially leading Bitcoin to this $ 110,000 bar, because the liquidity of the BTC available in continuous discussion to fall, which leads to an offer compression scenario,” he said.
“However, a correction at $ 76,500 aligns with the historic volatility of Bitcoin, often triggered by market changes to profit or unexpected,” he added.
Other analysts also see a high probability that the prediction of Hayes takes place.
“Given the recent closure of Bitcoin over the 21-day mobile averages of 21 days and 200 days, this Haussier dynamic aligns with its point of view. However, the resistance at $ 88,000 remains a key obstacle,” said Ryan Lee, Bitget Research chief analyst in Cintelegraph.
https://www.youtube.com/watch?v=GNUNX0QWH3Q3
Review: The chances of Bitcoin of the summits of June, outings of $ 485 million in ground, and even more: Hodler’s Digest, March 2 to 8, 8
This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
