Bitrabo Editorial
Currently, Bitcoin is experiencing an upward trend, steadily moving closer to its August highs while exhibiting bullish technical patterns. Despite pockets of strength and an optimistic market sentiment, buyers are encouraged to increase their activity, as indicated by the CoinMarketCap poll.
Consequences of Selling Bitcoin at $74,000
If Bitcoin manages to overcome the resistance levels around $65,000 and $66,000, it could trigger a significant demand surge, potentially escalating the price to reach all-time highs. Be mindful that there may be resistance at the $70,000 and $72,000 marks.
An analyst on X cautions that those who decide to sell when Bitcoin reaches about $74,000 might regret that move, labeling it a “disastrous” error. This perspective suggests that exiting at this level would be premature, as the cryptocurrency may have more room to grow.
From a technical standpoint, Bitcoin is operating within a bullish framework. The monthly charts reinforce that buyers maintain control despite a price drop following the record-high achieved in March 2024. Bitcoin currently appears inside a bullish pattern, and a close above the resistance trendline could signal an upward movement, affirming gains from late 2023 and early 2024.
While the bullish candlestick formations are encouraging, fundamental factors are also significant, according to the analyst. They argue that selling around $74,000 would be ill-advised, especially considering that the People’s Bank of China (PBoC) is actively supporting its economy by injecting liquidity.
China’s Liquidity Boost and Potential Boosts for BTC Demand
The analyst highlights that the central bank has introduced a 10-point easing strategy to help rejuvenate the struggling Chinese economy. This liquidity injection and interest rate cuts could have positive repercussions globally. Increased global liquidity could provide a favorable environment for Bitcoin, bolstered by supportive monetary policies from China, Japan, and the U.S.
Furthermore, Bitcoin could gain traction as the USD index (DXY) continues to weaken. A declining dollar may prompt countries in Europe and elsewhere to implement further support for their economies.
This dynamic could encourage investment in tangible assets like Bitcoin. Gold is currently near all-time highs, and Bitcoin may follow suit as investors seek refuge from rising inflation. Additionally, with the recent approval for BlackRock to launch a Bitcoin ETF and banks like BNY Mellon expressing interest in crypto custody, the conditions look favorable for fund managers to begin handling Bitcoin on behalf of their clients.