Lark opens with exciting news from China, which is injecting huge sums of money into its economy. This could have a big impact on risk assets like cryptocurrency. China’s cuts to repo rates and support for the real estate and stock markets are expected to boost the crypto market as well. Lark sees this as a major shift in global liquidity that could drive Bitcoin and other assets higher.
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Turning to Bitcoin, he notes that while Bitcoin hasn't reacted much to this news, it’s close to an important technical milestone.
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If Bitcoin closes above the 200-day simple moving average and breaks $65,000, Lark believes it could trigger a bullish rally, pushing prices toward $74,000. He also highlights Bitcoin’s historically strong Q4 performance, which could lead to a year-end price of $120,000.
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Lark points out that U.S. financial conditions are also easing, with the M2 money supply expanding. This, combined with China’s actions, could further fuel a rise in asset prices, including Bitcoin. Though Bitcoin is still in a consolidation phase, Lark emphasizes that the groundwork is being laid for a potential breakout.
On altcoins, he sees a bullish signal with a MACD crossover in the total market cap, excluding Bitcoin and Ethereum. He believes this could spark a significant altcoin rally in the months ahead. Ethereum, despite its recent struggles, is positioned for a comeback if it can break above $2,800. Other altcoins like Solana and Celestia also show strong potential, according to Lark.
In summary, Lark is optimistic about global liquidity shifts benefiting crypto, particularly Bitcoin, which he expects to break out soon. He also sees a strong opportunity for altcoins but advises staying patient and taking profits regularly to capitalize on market rallies.
