Bitcoin aims for $70,000 despite resistance
Bitcoin aims for $70,000 despite resistance
Bitcoin's recent rally has captured attention, with some investors viewing the surge as a signal of market expectations for a potential US election win by pro-crypto Republican candidate Donald Trump. Additionally, Bitcoin’s price movement has been closely tied to global liquidity trends. The significant increase in liquidity during 2024, driven by widespread money printing and rising debt, has positively correlated with Bitcoin’s upward trajectory.
However, despite this week's rise, Bitcoin is facing strong resistance at $68,000. Technical indicators, particularly the Relative Strength Index (RSI), suggest the cryptocurrency is nearing overbought conditions. This could prompt some investors to lock in profits, potentially leading to a short-term dip.
Why Bitcoin’s rally may push beyond $70k
Geopolitical tensions continue to suggest a bullish outlook. If the ongoing conflict in the Middle East escalates and pushes oil and energy prices higher, Bitcoin could break through the $68,000 and $70,000 levels. Arthur Hayes, co-founder of BitMEX, recently noted that if Iran targets key oil and gas fields, it could send energy prices soaring, which might boost Bitcoin’s value as a form of “stored energy” in digital form.
Historically, commodities have surged during periods of geopolitical tension. For example, from 1973 to 1982, oil prices rose 412% and gold followed closely with a 380% increase. While Bitcoin didn’t exist during those crises, it has shown some correlation with commodities like gold during inflationary periods, potentially making it one of the most valuable assets in 2024 uncertain climate.
Financial analyst at Traders Union predicts Bitcoin could reach a new all-time high as early as next month
