Following a major upgrade to its network, Bitcoin’s price has skyrocketed at the start of the week. Even the SEC’s rejection of a spot bitcoin ETF appears to have had little impact on bitcoin’s price prospects.
Gareth Soloway, chief market strategist at stock technical guidance platform InTheMoneyStocks.com, believes the token still has room to reach a new all-time high. BTC, on the other hand, must surpass a specific threshold.
According to his narrative, if BTC trades above $67,000 for at least two weeks, it could reach the $75k-$77k range. Nonetheless, there is a chance of a corresponding price correction. Similarly, BTC may be impacted.
Consider the above-mentioned plot, a double top; historically, whether on stock or cryptocurrency charts, significant highs can occur before major moves to the downside.
“As a result, the last thing an investor wants to do is put in new capital without knowing for certain that this is a significant break to the upside.” Now, if it rises above the recent highs and stays above $67,000 for a week or two, I believe it will reach at least $75,000 to $77,000. “That is my next calculated resistance level,” Soloway explained.
This was not the first time the analyst had warned investors/traders of a potential setback. Not long ago, he predicted that if Bitcoin failed to break through the $65,000 barrier, it would fall to $20,000.
Bitcoin and stock exchanges
The aforementioned interview also highlighted an intriguing comparison. He claims that the current price movement of Bitcoin is correlated with the stock market. According to Soloway, the latter plunge could drag Bitcoin down as it enters a bearish trend.
Having said that, regardless of the anticipated Bitcoin correction, cryptos do have some advantages over stocks. Mike McGlone, senior commodity strategist at Bloomberg Intelligence, shed some light on this.
It's almost guaranteed that the #FederalReserve will expand easing the next time the #stockmarket wobbles, if past patterns hold, which should solidify underpinnings for #Bitcoin. A cleansing of speculative excesses in 1H may be an advantage crypto assets have over the S&P 500. pic.twitter.com/2VwPYZDZDd
— Mike McGlone (@mikemcglone11) November 11, 2021
In this section, he contrasts the S&P 500 with the MVIS CryptoCompare Digital Assets index. It monitors the performance of the top ten most liquid digital assets. According to McGlone, one advantage crypto has over the stock market is its ability to shake out excess leverage from the system through sudden drops and rebounds.
Meanwhile, BTC maintains its strong position as crude oil and commodity prices show signs of peak inflation. He wrote on Twitter:
#Crudeoil and #commodities are good indicators that peak inflation is near. We believe crude is fundamentally a bear market bumping against the upper end of its price range since the 2014 plunge. Bitcoin is becoming digital collateral and part of the technology revolution pic.twitter.com/2gkQjfhHKt
— Mike McGlone (@mikemcglone11) November 12, 2021
Overall, the flagship token’s bullish narrative and statistics continue to strengthen its grip on the financial world. However, this is not the end. There will be a lot of FUD.Overall, the flagship token’s bullish narrative and statistics continue to strengthen its grip on the financial world. However, this is not the end. There will be a lot of FUD.
