Bitcoin hovering at $78,000, will it break through $80,000 on the back of the New York stock market's tailwind?

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

Bitcoin (BTC), which is consolidating around $78,000, is eagerly awaiting positive momentum from the New York stock market to gain further upward drive, while Wall Street experts' forecasts for the future market direction are sharply divided.

According to investment media FXStreet on April 24 (local time), the total cryptocurrency market capitalization fell by 0.6% to $2.59 trillion over the past 24 hours. While Zcash (ZEC), Theta (THETA), and Cosmos (ATOM) led the gains, major altcoins such as Ethereum (ETH), Polkadot (DOT), and Toncoin (TON) showed weakness. Currently, the US S&P 500 index is hovering around the 7,100 mark, and the Nasdaq 100 index is newly testing the 27,000 level, indicating that the crypto market is waiting to ride the stock market's rally.

The leading cryptocurrency, Bitcoin, is maintaining a stable trend around the $78,000 mark, defending against pressure to push it below $77,000 with strong buying interest. The current price is in the middle of an ascending channel formed between $75,600 and $80,500, and experts anticipate an acceleration of the uptrend soon, along with increased volatility in long-term trend indicators.

However, there are also skeptical views regarding the short-term outlook. QCP Capital diagnosed that the recent rebound is temporary and will not reverse the bearish trend. They analyzed that only the extension of the ceasefire and the remarks by Federal Reserve Chair nominee Kevin Warsh assuring independence are supporting risk-asset preference, and demand for downside protection remains strong in the options market. Jefferies also warned that the recent hacking incidents of Drift and Kelp Protocol, which led to an outflow of $15 billion from the decentralized finance ecosystem, could temporarily cool Wall Street's enthusiasm for blockchain adoption.

On the other hand, K33 Research emphasized the continuation of the uptrend. They stated that due to the discrepancy between Bitcoin's rising price and negative funding rates, the market could be exposed to a short squeeze (buying pressure that occurs to liquidate or cover short-selling positions) at any time. However, the $79,000 to $80,000 range, which aligns with short-term investors' realized prices, is expected to be a major resistance level, and CryptoQuant also identified $80,000 as a critical inflection point.

Anthony Pompliano of Morgan Creek assessed that Bitcoin has established itself as a perfect safe-haven asset amidst chaos, stating that a stronger rally will unfold in the future, given it has undergone a 50% correction from its peak.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*