On Wednesday afternoon, Bitcoin (BTC) surged to a remarkable all-time high (ATH) of $112,022, breaking free from its previous consolidation phase and lower resistance levels.
Bitcoin Rally Faces Critical Test
John Glover, the chief investment officer at crypto lending platform Ledn and a former managing director at Barclays Investment Bank, noted that the recent rally appears to be a retest of the previous all-time high set on May 22, which encountered selling pressure.
As some investors opted to take profits, notable publicly traded companies, including Trump Media & Technology Group and GameStop, have announced their intentions to purchase Bitcoin to bolster their treasuries.
Glover emphasized that the competition among these companies to accumulate Bitcoin could significantly impact market dynamics, given that the cryptocurrency’s popularity among publicly traded companies appears to be growing.
However, the sustainability of Bitcoin’s rally largely hinges on macroeconomic conditions and developments in trade negotiations. Sid Powell, CEO of crypto asset-management firm Maple, highlighted that any setbacks in trade discussions before President Donald Trump’s August 1 deadline could pose challenges for Bitcoin’s price movement.
Conversely, if trade negotiations progress and inflation continues to ease, the Federal Reserve (Fed) might consider cutting interest rates, which could further support Bitcoin’s upward trajectory.
Scenarios For A Potential Breakout Toward $130,000
Market expert Doctor Profit recently took to social media, declaring that Bitcoin’s rally is just beginning. He confidently stated, “THE PARTY IS NOT OVER YET,” predicting a potential new all-time high soon.
His analysis indicates a target range of $120,000 to $130,000 for this cycle. According to Doctor Profit, two potential scenarios could pave the way for this breakout.
The first involves Bitcoin reaching the $113,000 to $114,000 range, followed by a correction to the $92,000 to $93,000 level, which aligns with a major liquidity pool and the CME gap. A rebound from this lower range could set the stage for a rapid ascent toward the $120,000 mark.
The second, more aggressive scenario suggests that Bitcoin could break through the $113,000 to $114,000 barrier and continue its upward momentum without revisiting lower liquidity levels.
In either case, the $113,000 to $114,000 range is critical, as the market’s reaction to this level will significantly influence the speed and direction of Bitcoin’s next leg.
When writing, BTC has retraced back toward $111,422, attempting to make this level its new support floor for further price appreciation.
Featured image from DALL-E, chart from TradingView.com
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