Bitcoin's march toward the $100,000 milestone has investors worldwide on edge. Co-host of Altcoin Daily, Austin Arnold, explores the factors influencing bitcoin's price movement in a recent conversation. Joining him is Gareth Soloway, Chief Market Strategist at Investing Education-Investing and Trading Courses, who shares his technical analysis on the cryptocurrency's short-term outlook.
"Bitcoin is pulling back here," says Gareth Soloway. "We came up as high as about $99,000 in change right up here, and we're now seeing a pullback." He explains that many investors expected to break $100,000 but are now getting nervous as it hasn't happened. "They're getting nervous, and now as it's down, that kind of weak-handed investor is starting to sell, and it's causing bitcoin to retrace."
Despite the pullback, Soloway remains optimistic. "I still think it's going to break $100,000 here," he asserts. "You have to kind of wipe out those weak hands first that piled in just for that glory of watching the breakout above $100,000." He predicts support around $91,000 to $92,000 before bitcoin stabilizes and starts turning back up.
Discussing technical indicators, Soloway points to a "parallel channel that goes back to the high of 2017." He anticipates that bitcoin will "push back up, pierce $100,000, and we kind of go up to tag this upper level, which is right around $107,000 to $108,000." He also warns of a potential "bigger correction" afterward, possibly back to $74,000 to $75,000.
Austin Arnold questions the impact of recent macroeconomic changes: "What would you say to the people that argue a paradigm shift has happened since the Trump election, including macro changes like the Fed is cutting rates into next year and Trump... filling his cabinet with the bitcoin people... Wouldn't that be a paradigm shift and then maybe a more bullish outlook?"
Soloway agrees but emphasizes timing. "I actually think it is. I think the key is the timing," he responds. "In the short term, the key to market activity is fear and greed." He notes that as the economy slows down, "The stock market will start to tumble... and because of that fear, you'll likely see a retrace." Despite short-term volatility, he remains long-term bullish: "I continue to be long-term crazy bullish on bitcoin. I think it's going well above $150,000, maybe $200,000 or beyond."
