Key Points
- Bitcoin’s rally is at a critical juncture, with the resilience of the bulls under scrutiny.
- The market is experiencing extreme euphoria as Bitcoin hits a new all-time high, sparking $100K+ price predictions.
The rally of Bitcoin is at a critical turning point, with the bull’s strength being put to the test. A short-squeeze could serve as the trigger needed to propel Bitcoin towards the next significant level of $110K.
The market is currently in a state of extreme euphoria as Bitcoin hits a new all-time high of $93,490. This has led to a flurry of $100K+ price predictions on social media. Savvy traders, however, are aware that such euphoria often signals a need for caution, as it can indicate a market peak.
The Bulls Take Control
Recently, Bitcoin experienced a slight bearish divergence, dipping by 0.57% and consolidating around $87K. The bulls, however, quickly regained control, sparking a 3% rally the following day and setting a new all-time high. This was a critical moment, with the bulls rallying with conviction and setting their sights on the legendary $100K milestone.
As Bitcoin continues to climb, selling pressure is expected to increase. Therefore, the real challenge for the bulls lies ahead, with potential pullbacks looming.
Potential Roadblocks to $100K
As Bitcoin’s surge continues, traders are sitting on significant unrealized profits. This increases the chances of a rally halting and a price correction setting in. After reaching extreme price peaks, uncertainty often leads to caution. With ongoing concerns about regulatory changes, many traders may opt to lock in their gains and minimize losses, potentially adding downward pressure to the market.
Bitcoin miners offloading their holdings serve as a classic example of this. The same day the rally first stalled in this post-election cycle, with Bitcoin dipping to $82K after reaching a new all-time high of $87K the previous day, miners saw an extreme outflow of 25,000 BTC. This suggests that miners might be uncertain about Bitcoin reaching $100K and are looking to capitalize on the current high prices.
Despite these potential roadblocks, the $100K benchmark seems within reach, with minor pullbacks along the way. It will be interesting to see what happens after this target is reached. Historically, whales tend to go against the crowd, buying when others are fearful and selling when they’re exuberant. Over the past week, whales have accumulated 100K Bitcoin, valued at over $8.60 billion.
If the bulls manage to hold strong after Bitcoin hits the $100K mark, a massive short liquidation could be triggered, potentially setting the stage for a Bitcoin rally toward $110K.
