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Despite recent retracements in the Bitcoin (BTC) price, which saw it attempt to consolidate around the $107,000 mark, optimistic forecasts for the leading cryptocurrency are gaining traction.
Hunter Horsley, CEO of Bitwise Asset Management, recently shared his insights on social media platform X (formerly Twitter), suggesting that once Bitcoin surpasses the $130,000 to $150,000 range, selling pressure will diminish significantly.
Shift In Bitcoin Selling Trends As Prices Rise
During his analysis, Horsley stated that many long-term Bitcoin holders are currently selling portions of their cryptocurrencies, acquired at much lower prices, but anticipates that this trend will change as Bitcoin reaches new heights above the one recently reached of $111,8000.
Horsley emphasized the potential for a shift in liquidity strategies among investors, predicting that those needing cash will increasingly turn to a growing number of lenders rather than selling their Bitcoin. He believes that the limited supply of BTC will further drive up prices as demand continues to rise.
Adding to the bullish sentiment, crypto analyst Merlin Trader highlighted a recent technical development known as a “golden cross” on Bitcoin’s price charts, which historically signals upward momentum.
Merlin Trader suggested that this bullish pattern could lead to a remarkable 63% price increase for the market’s leading cryptocurrency, potentially pushing BTC’s price to a new all-time high of around $174,400.
Three Scenarios For BTC’s Price Movement
The increasing adoption of Bitcoin by publicly traded companies, state governments, and institutional investors as part of their reserve strategies is also contributing to the market’s positive outlook. This trend is seen as a hedge against broader economic uncertainties, further solidifying Bitcoin’s role in the financial ecosystem.
Mark Cullen, another market analyst, outlined his own strategy for navigating the current price dynamics. He identified key resistance levels, noting that the Bitcoin price is testing the $110,000 mark after a strong performance.
Cullen laid out three potential scenarios: a quick retracement followed by a rapid buy-up, a more significant correction that could dip below $100,000 before rebounding later in the month, or a deeper correction, although he considers this option increasingly unlikely.
Cullen pointed to critical support levels at $106,000 and $98,000, asserting that maintaining these levels is crucial for a bullish continuation through the summer. He cautioned that if BTC were to drop below $98,000, it could signal a challenging period ahead.
At the time of writing, BTC trades at $107,845, retracing little over 3% from its record high after a failed attempt to retest this crucial level.
Featured image from DALL-E, chart from TradingView.com
