Recently, there have been rumors in the market that Bitcoin could soar to $120,000.
Does it sound like a fairy tale? But if you look closely, there are quite a few 'reliable' signals supporting this bullish logic.
So, what factors are giving Bitcoin a 'boost'?
1. Bitcoin's 'resilience' is getting stronger.
This wave of Bitcoin's movement is a bit different. Even in the face of macroeconomic uncertainty and traditional market volatility, it remains strong. This kind of 'resilience' is likely to attract more investors into the market. The more buyers there are, the easier it is for the price to rise.
2. The Federal Reserve has signaled a potential rate cut.
Recently, more and more Federal Reserve officials have started to sound dovish. In particular, Federal Reserve Governor Christopher Waller has stated that a rate cut in July is possible. A low-interest-rate environment has always been a 'good friend' of cryptocurrencies, especially Bitcoin.
Some even jokingly said: 'This is the MAGA faction taking over the Federal Reserve.' Because one of Trump's favorite things to do is to lower interest rates.
3. Oil prices are falling, alleviating inflationary pressure.
Recently, international oil prices have unexpectedly fallen, directly alleviating inflationary pressures. With inflation down, the Federal Reserve has more room to cut interest rates.
For the market, this means liquidity is likely to be further released, which is undoubtedly a huge positive for Bitcoin.
4. The technical indicators are also starting to support an upward trend.
The momentum indicators are also not to be underestimated:
The 100-day moving average has just crossed above the 200-day moving average, which is a typical 'bull market signal'.
Earlier, the 50-day moving average also crossed above the 200-day moving average, which we commonly refer to as a 'golden cross'.
Now these three important moving averages are neatly aligned like a 'golden triangle', which is almost identical to the technical situation before the price surged to $100,000 last November.
Bitcoin is currently at the intersection of macro policy support + alleviation of inflation + strengthening technical indicators. Although $120,000 sounds high, it's not impossible. It depends on whether favorable news continues to follow.
What do you think? Can Bitcoin really reach $120,000 next? Or is it just another 'bull market illusion'?
Feel free to leave your views in the comments, and don't forget to follow me as we uncover the truth behind the market and maintain a steady pace without stepping on landmines!
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