Bitcoin recently fell below $ 30,000 after a selloff triggered by factors including a slump in global markets. While many institutions are predicting a big market crash, Lark Davis, a crypto influencer and YouTuber, believes that Bitcoin still has a chance of hitting $ 100,000 by the end of the year. According to him, the catalysts that could make this happen are institutional interest, positive market sentiment, and the current trend of Bitcoin's technical setup.
Bitcoin (BTC) technical analysis
According to Davis, the history of cryptoassets that had a massive surge followed by a long and brutal correction before recovering with a spectacular surge to surpass their all-time high can be repeated. On the record, Ethereum did much the same in 2017 and ended the year up 237%. Immediately after, the digital asset lost 69% of its value, it took 6 months of lateral range to recover.
Lark Davis mentioned that Bitcoin will have to register an increase of almost 50% from its all-time high to reach $ 100,000.
History does not repeat itself, but it rhymes.
Davis explained that the Bitcoin market looks bearish in terms of sentiment. According to him, Bitcoin's fear and greed index has fallen below 25 for more than two months. Although this doesn't look good, things can change quickly. He believes the bearish sentiment was helped by media reports on regulations, China, and comments on the "end of cryptocurrencies."
The sentiment will be a great catalyst to send Bitcoin to $ 100,000. According to a poll by Davis, 44% of respondents agreed that Bitcoin can go up to $ 100,000, 28% said this will never happen, and the rest said they don't care.
Rocket fuel for Bitcoin
In the summer of 2020, DeFi triggered the bull run, and in the fourth quarter of 2020 and the first quarter of 2021, institutional investors fueled the bull run.
Lark Davis believes that the Bitcoin ETF may trigger the next bull run, as 13 applications have been filed with the SEC from some of the largest companies, including Ark Invest. As it stands, Brazil and Canada have already approved some ETFs. Gold ETFs sparked a seven-year streak of 400%.
Do you have the minimum Bitcoin price?
Lark Davis also explained that Bitcoin's price may not have necessarily bottomed out despite the potential to hit $ 100,000.
According to him, the current metrics do not indicate a bull run, as his market volume does not seem impressive. He explained that Bitcoin has not recovered its 50-day simple moving average.
Without this, it is difficult to speak of bulls entering the market… The bears are still in charge.
Despite the bear market, he advised investors not to buy at the bottom or sell at the top.
money is earned in the middle.
There is hope for the market as large amounts of money come in. Ark Invest increased its exposure to Bitcoin by buying 140,000 Grayscale shares worth $ 3.3 million. Alameda Research, led by Sam Bankman-Fried, also revealed the purchase of a large amount of Bitcoin under $ 30,000. Currently, there is a narrative change.
The ultra-rich are turning to cryptocurrencies and 45% of family offices are eager to get in. The manipulators are ready to turn on the switch.
Tesla has also revealed that it can once again accept Bitcoin in exchange for its cars.