Some market analysts have indicated that Bitcoin is likely to approach the $120,000 mark in the near future.
Yuya Hasegawa, an analyst at Bitbank, suggests that it might take up to a week for the market to fully digest the implications of the Federal Reserve’s recent interest rate cut after a prolonged nine-month pause.
“The ongoing risk appetite following the FOMC meeting enhances Bitcoin’s technical outlook and serves as additional support. This brings us closer to testing $120,000,” remarked Hasegawa from Tokyo. He also pointed out that a significant reversal could be imminent if there is a successful breakout.
The upcoming remarks from Fed Chair Jerome Powell and Vice Chair for Supervision Michelle W. Bowman will be scrutinized closely next week. The updated projections from the FOMC hint at two potential interest rate cuts in 2025; however, Powell has not firmly committed to this scenario yet.
According to Hasegawa, one of the main risks currently facing investors is a strong dollar coupled with weak bonds (increasing yields). Nevertheless, he emphasized that this reaction appears short-term as markets may be overestimating discounts for next year.
On another note, Jake Ostrovskis, who leads OTC trading at Wintermute, observed that options market participants are mainly selling premiums while setting upper limits on prices. He stated: “Trading activity indicates call spread selling within the $125,000-$150,000 range. This implies investors do not foresee Bitcoin breaking significantly above this threshold.”
*This information should not be considered investment advice.