As a seasoned researcher with extensive experience in the cryptocurrency market, I’ve seen my fair share of bull runs and bear markets. The latest Bitcoin rally seems to have lost some momentum at the $96,000 level, which is reminiscent of a stubborn toddler refusing their vegetables before dinner.
The potential upward surge in Bitcoin associated with the “Trump trade” could be over until Bitcoin breaks through the significant resistance at around $98,000.
On December 3 at 11:39 am UTC, the value of Bitcoin (BTC) declined from an unsuccessful attempt to reach $96,000 for the fourth time in a row, dropping down to $94,812 according to CryptoMoon’s data.
As a crypto investor, I’ve been observing the market trends closely, and based on the insights shared by Michaël van de Poppe, a well-respected figure in the crypto world, it seems that Bitcoin might not witness substantial upside momentum until it manages to surpass the $98,000 resistance level. This is as he stated in his latest blog post on Dec 3.
“Bitcoin still patiently waiting to break $98,000 to get ourselves into the magic wonderland of $100,000+ […] might take some time. If we do dip, regardless, then my areas stay unchanged.”
In the time period leading up to the 2024 U.S. presidential election, some financial experts suggested that Bitcoin was being used as a stand-in for trading on Donald Trump’s win. However, the surge in value didn’t have the underlying economic conditions necessary to push Bitcoin to another record high, which reached $99,800 on November 22, two weeks following Trump’s victory.
Bitcoin needs to breach $98,000 to claim $100,000 new high
Crypto analysts increasingly see the six-figure valuations as a matter of time for Bitcoin price.
It’s possible that Bitcoin may reach a peak of around $110,000 in January 2025, according to its connection with the Global Macro Investor’s Total Liquidity Index. This index provides a comprehensive look at the combined balance sheets of major central banks worldwide.
According to an anonymous analyst known as DonAlt, Bitcoin might surpass $110,000 if it manages to break through the current resistance at around $98,000, as suggested by technical chart patterns. This analysis was shared in a recent post on Dec. 2.
“Probably giga sends on a close above $98k towards $110k. Probably wipes everyone on a dip to $80k if it loses $90k.”
Meanwhile, the noted analyst also pointed out that Bitcoin might persist within its existing trading band, with minimal shifts towards either direction.
Bullish signal: short-term holders stop selling Bitcoin
Short-term Bitcoin holders have ceased offloading their Bitcoin, indicating a positive trend in its price direction as the selling habits of these holders significantly influence Bitcoin’s short-term movement.
The heavy selling activity, as suggested by Sina G, the co-founder and COO of 21st Capital, was likely the cause for Bitcoin not surpassing $100,000 in November. This was outlined in a December 2nd blog post by him.
“We were rejected pretty hard from $100K because STH took profits, as evidenced in SOPR spike. High SOPR = High profit-taking. But they have stopped taking profits.”
The potential increase in Bitcoin‘s price could be boosted by approximately $2 trillion in investments by 2025, as it might take up around 10% of the anticipated growth in the global money supply. This expansion is projected to reach $127 trillion due to the U.S. Federal Reserve’s focus on addressing liquidity issues.
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2024-12-03 16:03