The post Oil Price Drop Sparks Bitcoin Surge: Is $109K the Next Target? appeared first on Coinpedia Fintech News
Bitcoin, the pioneer cryptocurrency which is currently hovering around $97,689, showing signs that its consolidation phase may be ending across multiple timeframes. Perhaps, other several factors are aligning in favor of a potential price surge, suggesting Bitcoin could soon reach a new all-time high (ATH).
Dropping Oil Prices Tends To Raise BTC
According to Matthew Dixon, a veteran financial trader, the recent decline in oil aligns perfectly with expectations and may serve as a catalyst for Bitcoin’s next big rally. Crude oil prices have been steadily descending, approaching key support levels. This drop comes at a crucial time when inflation has been a major concern for economies worldwide.
Dixon pointed out that the falling oil prices are a positive development for Bitcoin and other risk assets. Historically, when inflation fears ease, investors tend to take on more risk, increasing interest in digital assets and stocks.
If inflation slows, investors might turn to Bitcoin as an alternative investment, potentially pushing its price to new highs.
Retail Demand See Strong Comeback
Apart from Bitcoin’s retail demand is showing a strong recovery after a short slowdown. Meanwhile, recent data reveals that retail activity dropped by just 2% in the last 30 days, a much better than the 20% decline seen in January.
Market analysis also suggests that demand is holding up well. Even though Bitcoin is moving within a set price range, retail investors are still actively engaged.
Bitcoin Price Analysis
As per the Bitcoin technical analysis, the 1-hour chart signals a short-term bullish trend, with Bitcoin climbing to $98,784 after rebounding from $94,091. Bullish candlestick patterns indicate growing momentum, but the price remains close to key resistance. A breakout above $99,200 could open the door for a push toward the $100,000 mark.
Additionally, strong support from multiple moving averages and sustained bullish momentum on shorter timeframes suggest that surpassing $100,000 could drive Bitcoin even higher, potentially reaching previous highs near $109,356.
With Bitcoin eyeing new all-time highs, the current market setup might provide the necessary momentum to fuel further gains.