Amid the current Bitcoin (BTC) rally, crypto expert Caleb Franzen, the founder of Cubic Analytics has recently shed light on his faith in the cryptocurrency reaching $175,000, due to certain factors and when this might happen.
Caleb Franzen Optimism On Bitcoin
On Wednesday, November 8, Caleb Franzen was interviewed by Thinking Crypto, where the crypto expert revealed his optimism about Bitcoin. The expert thinks that the strength of the crypto asset will benefit the whole cryptocurrency industry.
According to Frazen, his strong belief in the crypto asset is due to the bullish indicators that he observed in the Bitcoin charts. He put forward the idea of a critical support and resistance level as the “200-day moving average Cloud.”
Franzen also underscored how clear market signals are important, as he pointed out several factors that might bolster Bitcoin price when he was asked about Bitcoin’s short-term and long-term price expectations. These include the Bitcoin halving, a potential approval of spot Bitcoin ETFs, and non-recessionary rate cuts.
According to him, a potential approval of a spot exchange-traded fund (ETF) could have a huge impact on the crypto asset. This checks out as the current price rally of the asset seems to have been triggered by a false Bitcoin ETF approval news that was shared by CoinTelegraph last month. Ever since, the digital asset has been on an upward trajectory.
The crypto expert further highlighted a large price spike might lead to a $20,000 candle if blanket approvals for ETFs were to happen. In addition, due to several other reasons like the halving cycle and a less restrictive monetary policy environment, Franzen expressed optimism that Bitcoin might reach $175,000 in the next bull run.
While the expert gave factors that could propel the asset’s price, he also gave other factors to consider that could affect it negatively. Franzen highlighted the possibility of a fundamental macroeconomic recession risk as a possible bearish factor for the token.
He issued a warning, saying that if a recession were to take place, the value of the token and other financial assets could drop dramatically. While emphasizing a recession risk, Franzen used the recession that occurred back in 2019-2020 to back up his claims.
He asserted that the recession that happened within the period took the price of Bitcoin from $10,000 to $3,500. According to him, there is a possibility that something similar to this might happen if there is another recession.
In addition, he also brought up the possibility of exchange risks or possible fraud activities surfacing which could cause corrections in the cryptocurrency market.
Joint Effort Sparks Momentum For The Cryptocurrency
Currently, Bitcoin is sitting at approximately $36,400, slowly gaining momentum at the coveted $40,000 mark. The crypto asset’s recent price breakthrough was believed to be buttressed by the presence of the Golden Cross and a rising 200-day simple moving average (SMA).
A Golden cross signal combined with the rising 200-day SMA, presents an increasing long-term trend. This is because these indicators support the current uptrend and offer a solid basis for further price growth for the cryptocurrency.
Featured image by iShock, chart by Tradingview.com