Bitcoin aims for $77,000...What are the chances of setting a new historical high?

▲ Bitcoin (BTC), Up / ChatGPT Generated Image

Bitcoin (BTC) is preparing for an unstoppable surge towards the $77,000 mark, breaking through geopolitical crises in the Middle East.

Crypto analyst Lark Davis stated in a video released on his YouTube channel on April 10 (local time) that the current virtual asset market is experiencing the strongest macroeconomic tailwinds since COVID-19. As global M2 money supply and total liquidity rise in tandem, China's money supply, in particular, is positively impacting the market. Davis emphasized that this liquidity injection will be a key driver for Bitcoin's price increase.

Despite geopolitical uncertainties, the practical use cases for Bitcoin are actually increasing. Even as truce negotiations between the US and Iran remain shrouded in uncertainty, capital inflow into Bitcoin spot ETFs continues unabated. Recently, $358 million flowed into Bitcoin spot ETFs in just one day, demonstrating institutional investors' willingness to buy. In particular, the use of Bitcoin for paying tolls in the Strait of Hormuz proves its value as a censorship-resistant asset.

From a technical analysis perspective, Bitcoin is also sending strong signals of a price breakout. Bitcoin, currently consolidating within a specific channel, is on the verge of a 20-day and 50-day Exponential Moving Average (EMA) golden cross. Davis predicted that if Bitcoin maintains the $70,600 level, it is highly likely to form a bull flag pattern and rise to $77,000. If the channel breakout is successful, the market will enter a new upward trend.

On the other hand, strong caution was advised regarding World Liberty Fi, a project promoted by Donald Trump's family. The token of this project lacks practical utility, and its protocol revenue is concentrated among specific individuals. Being used as collateral for large loans in a low-liquidity state, there is a high risk of cascading liquidations and platform collapse if prices fall. Investors must face the inherent risks of projects that rely on fame.

Diversification and accumulation activities by virtual asset-related companies are also active. Bitcoin mining company Marathon Digital has expanded into the data center business to improve profitability. Strategy also saw a weekly Moving Average Convergence Divergence (MACD) signal, and chairman Michael Saylor's continuous accumulation continues. Overall market indicators point to a full-fledged bull market.

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