Bitcoin hovering around $78,000, will it break $80,000 riding on 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 a tailwind from the New York stock market to gain momentum for further price increases, while Wall Street experts hold sharply divided views on the future direction of the market.

According to investment media FXStreet on April 24 (local time), the total cryptocurrency market capitalization decreased by 0.6% over the past 24 hours, reaching $2.59 trillion. 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 poised to ride the stock market rally.

Bitcoin, the leading cryptocurrency, is defending against pressure to fall below $77,000 with strong buying interest, maintaining a stable trend around the $78,000 level. The current price is situated in the middle of an ascending channel formed between $75,600 and $80,500, and experts anticipate an acceleration of the uptrend soon, accompanied by 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. Only the extension of the ceasefire and comments guaranteeing the independence of Federal Reserve Chair nominee Kevin Warsh are supporting risk-on sentiment, and demand for downside protection remains strong in the options market. Jefferies also warned that the recent hacking incidents involving Drift and Kelp Protocol, which led to a $15 billion outflow from the decentralized finance ecosystem, could temporarily cool Wall Street's enthusiasm for blockchain adoption.

Conversely, K33 Research placed emphasis on the continuation of the uptrend. They stated that due to the discrepancy between rising Bitcoin prices and negative funding rates, the market could be exposed to a short squeeze (buying pressure occurring to liquidate or cover short 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 would unfold in the future, given that it has undergone a 50% correction from its peak.

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