Will Bitcoin Break $74,000 Driven By TradFi FOMO?
March 27 2024 - 12:00PM
NEWSBTC
Willy Woo, an on-chain analyst, believes the Bitcoin
upswing is far from over. Citing the development in the Bitcoin
Macro Oscillator and the possibility of traditional finance jumping
on the bandwagon (FOMO), the odds of BTC rallying in at least two
strong legs up in the coming session could not be discounted.
On-Chain Data Signals More Upside For Bitcoin In a post on X, Woo
remains confident about what lies ahead for the world’s most
valuable cryptocurrency. Based on on-chain development, there are
indicators that the coin may firmly push higher, breaking above the
current lull. Related Reading: AI Tokens Fetch.AI, AGIX, OCEAN Talk
Merger, Surge Double Digits Bitcoin remains mostly range-bound when
writing, trading within a tight zone capped by $73,800 on the upper
end and $69,000 as immediate support. Even with analysts being
confident of what lies ahead, the coin has failed to overcome
strong selling momentum from sellers to breach all-time highs in a
buy-trend continuation. From how the coin is set up, the current
sideways movement may be accumulation or distribution, depending on
the breakout direction. For instance, any upswing above $72,400
might spur demand, lifting the coin towards $73,800. Conversely,
losses below $69,000 and the middle BB might see BTC slump to March
5 lows or even lower. Will TradFi FOMO And Short Squeeze Lift BTC?
Even with the slowdown in upside momentum, Woo says there is strong
potential for “another solid leg up.” The analyst also added that
there could be two surges if TradFi investors “FOMO” into Bitcoin.
In the 2017 bull run, the rally to $20,000 was primarily due to
retailers jumping in and FOMOing on the coin. With spot
Bitcoin exchange-traded funds (ETFs) available in the United
States, speculation is that more institutions and high-net-worth
individuals are buying the coin. If BTC rips higher, breaking
$74,000, more inflow will likely be into the multiple spot Bitcoin
ETFs, fueling demand. Related Reading: Litecoin ETF Rumors Fuel 10%
Surge As Institutions Hint At Interest This bullish outlook comes
when other analysts expect Bitcoin to surge in the sessions ahead.
In a post on X, one analyst says the incoming short
squeeze will likely propel the coin above March highs. Whenever a
short squeeze happens, prices rise, forcing sellers to buy back at
higher prices, accelerating the uptrend. The assessment is behind a
record-breaking gap between institutional investors betting on
price increases and hedge funds selling the coin. Feature
image from DALLE, chart from TradingView
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