Although Bitcoin (BTC) is back below the $31,000 level it had briefly surpassed earlier, economist and trader Alex Krüger is bullish on it, setting a high price target, particularly in light of the recent spot Bitcoin exchange-traded fund (ETF) applications.
According to Krüger, the news of the world’s largest asset manager, BlackRock (NYSE: BLK), filing for a spot Bitcoin ETF was “huge and not properly priced in yet,” as he told cryptocurrency trader and investor Scott Melker, a.k.a. The Wolf Of All Streets, in a podcast streamed on July 3.
“We have very strong news of the BlackRock Bitcoin ETF likely being approved. It’s debatable if it’s going to get approved or not (…), but the point is right now, we’ve just moved 20% on this news. And the probability is definitely above 50%, if not around 75%. So the [first] point is, on one hand, the market is not positioned right for this.”
Resistance at $31,000 – $37,000
The second point, according to him, is that the maiden crypto asset is “right on the edge of resistance (…) between $31k to $37k,” where $37,000 is “the lunar level” from mid-May, “when some of us almost had a heart attack, and some of us went out and danced in joy. (…) We’re right at the edge of a breakout, and once it breaks, it should keep on running.”
On top of that, the economist highlighted that the recent trend of Bitcoin’s decorrelation with other risk assets was only temporary and likely due to the ongoing regulatory offensive that has seen multiple lawsuits filed against major participants in the crypto market.
“On the correlation side, the regulators in the US got very aggressive this year, starting in early April. Many large market makers started taking a step outside the market. That made correlations break down to basically 2020 levels before Bitcoin was a macro asset. That is temporary.”
Bitcoin price analysis
In the meantime, the flagship decentralized finance (DeFi) asset is changing hands at the price of $30,293, which represents a decline of 2.38% on the day but still a 0.65% gain in the previous week and an increase of 13.54% on its monthly chart, according to the latest data retrieved on July 5.
At the same time, the crypto market expert Willy Woo believes that Bitcoin is in for another price squeeze following the sustained increase in demand coming from institutional and professional investors in Bitcoin futures, as Finbold reported earlier.
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