Bitcoin ($BTC) hits all-time high of $93,500 – $100,000 soon?

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As a seasoned crypto investor with a decade of experience under my belt, I must say that the current state of Bitcoin ($BTC) is nothing short of exhilarating. The all-time high of $93,500 and the imminent potential of reaching $100,000 has my heart racing. The incoming U.S. administration’s pro-Bitcoin stance is like a breath of fresh air, sweeping away the remnants of crypto skeptics such as Gary Gensler.

On Wednesday, Bitcoin ($BTC) reached an unprecedented peak of $93,500. Given the consistent influx of net funds from U.S. Spot Bitcoin ETFs alone, it appears that Bitcoin could soon surpass the significant milestone of $100,000.

Incoming U.S. administration is pro-Bitcoin

It seems like everything is falling into position for Bitcoin. In just a few months, an administration that’s expected to be favorable towards cryptocurrencies will take office in the U.S., marking a potential milestone.

The old guard, including critics like Gary Gensler (SEC chairman) and the current Democratic administration, may be replaced by a new Republican administration that seems eager to foster the growth and development of Bitcoin and other positive aspects within the cryptocurrency sector.

Uncertain economic outlook favours Bitcoin

While the political situation seems promising, let’s consider the economic viewpoint – it remains rather uncertain. The latest U.S. Consumer Price Index (CPI) data has shown a slight increase in inflation, which is unfortunate for the Federal Reserve as it might necessitate a reevaluation of their plans for another rate cut during the final FOMC meeting of 2021 in December.

Furthermore, U.S. government bond interest rates are rising, even after the latest interest rate reductions. This trend suggests that investors are only willing to keep U.S. bonds if they receive higher returns, viewing these investments as becoming increasingly risky due to changing market perceptions.

Fortunately, Bitcoin operates independently of government intervention, making it an increasingly appealing safe-haven option in an increasingly volatile global financial landscape. This isn’t limited to the U.S., but extends to the broader international financial system as well.

Blackrock IBIT ETF pulls in $3 billion in $BTC in only 5 trading days

It seems likely that U.S. Bitcoin ETFs continue to buy significant amounts of Bitcoin because of this. On Wednesday alone, approximately $509.4 million was withdrawn from the market by these ETFs. As is often the case, the Blackrock IBIT ETF has been the primary buyer. Over the last five trading days, it has purchased over $3 billion worth of Bitcoin.

Bitcoin uptrend continues

In simpler terms, over a short period, Bitcoin’s price is moving upwards in an uptrend. On Wednesday, a small ‘bullish flag’ pattern emerged, and as expected, the price broke through the upper part of this pattern. However, after reaching that high point, the price has since dropped to retest both the top of the bullish flag and the ascending trendline.

Additionally, the gradually upward-sloping line visible on the graph represents a trendline that connects the peaks from the 2021 cryptocurrency market rally. Currently, the BTC price has been tested against this trendline, suggesting it could function as robust support in the upcoming period.

Bearish divergence a possible concern 

The latest BTC weekly graph clearly shows that the upward trendline has been broken. However, for the trendline to change from resistance to potential support, a weekly close above the line is required. If that occurs, we can expect further increases in Bitcoin’s price.

By examining the Relative Strength Index (RSI) located at the chart’s base, it is evident that the index is exhibiting a strong upward trajectory. To maintain current market conditions, this positive trend should persist as it currently falls short of the previous high of 88.00. If the index were to reverse and fail to surpass this high, it would create a concerning bearish divergence – a potential signal for an end to the bull market.

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2024-11-14 16:55