As a seasoned analyst with decades of experience in navigating volatile markets, I find myself both awestruck and cautious regarding the unprecedented surge of Bitcoin to nearly $90,000. It’s been quite the rollercoaster ride since my days of analyzing the dot-com bubble, but this crypto beast has its own unique set of dynamics.
On Monday, Bitcoin ($BTC) experienced its largest single-day surge ever, climbing by a staggering $8,343. Reaching nearly $90,000 on Tuesday before briefly pulling back, one might wonder if this peak marks a temporary plateau or if the remarkable upward trend could persist further.
Is gravity about to kick in?
Whatever rises high will eventually fall low, and this principle isn’t limited to our physical universe but also extends to financial markets. Bitcoin, the reigning cryptocurrency, has soared remarkably since Donald Trump became the U.S. president. It’s reasonable to assume that a break or pause is now due for the king of digital currencies.
The tremendous optimism and positive developments surrounding Bitcoin have driven its value up to an astounding $90,000. While some believe that this is merely a prelude to Bitcoin’s ultimate peak, the journey to the market pinnacle is likely to include numerous ups and downs, with some dips potentially being quite significant.
MicroStrategy buys another $2 billion $BTC
Purchasing another large batch of 27,200 Bitcoins, worth approximately $2 billion, by MicroStrategy brings its total to nearly $90,000 per coin. This latest acquisition by Michael Saylor’s company raises questions about whether this move could trigger a ‘sell the news’ event for Bitcoin holders.
U.S. Spot Bitcoin ETFs buy another $1.12 billion $BTC
In terms of the U.S. Bitcoin ETF market, recent purchases are likely to fuel additional price increases. On Monday, these ETFs collectively bought approximately 13,940 Bitcoins at a value of around $1.12 billion. Notably, the Blackrock IBIT ETF accounted for about $763.6 million of this total amount.
Any $BTC left on the OTC desks?
There’s been chatter on various social platforms suggesting that Bitcoin OTC desks are running low on Bitcoin. Given MicroStrategy’s acquisition and robust ETF investments, it remains to be seen how the market will react when small investors and major institutions begin buying in larger quantities.
$BTC potentially rejected from 1.618 Fibonacci level
Despite some challenges, the Bitcoin weekly chart holds a fascinating narrative. As it stands in the midst of price discovery, pinpointing the exact price trajectory becomes tricky due to the absence of past prices to serve as a benchmark for the current one. However, the Fibonacci sequence and ascending trendlines can provide valuable insights about potential future price resistances and offer some guidance respectively.
As I analyze the weekly Bitcoin (BTC) chart, it appears that a potential rejection occurred at the significant 1.618 horizontal level – a key Fibonacci resistance point often seen in market trends. Given the significance of this level in trading, this development aligns perfectly with my expectations.
If significant improvements are made from this point, the price may potentially rebound to approximately $80,300, which aligns with the 1.272 Fibonacci level. A more substantial correction might lead the price back towards its previous record high, around $74,000.
Price hits ascending trendline from 2021 bull market top
Considering the double top formation at the end of the 2021 bull market, if we step back to observe, we find that a line connecting those two peaks lines up remarkably close to the $90,000 price point. Interestingly enough, this level came very near during trading on Tuesday.
As a researcher, I’m piecing together more clues about where the next market peak might lie, and this particular pattern seems to fit quite well. However, it’s crucial to exercise caution as it could potentially represent a significant reversal rather than the conclusion of the bull market. On the other hand, this could also be a normal correction before another surge upwards.
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2024-11-12 14:13