Bitcoin ($BTC) in touching distance of $100,000

As a seasoned crypto investor with scars from past bear markets, I can confidently say that Bitcoin’s ascent to $100,000 feels like a long-awaited victory lap.

Bitcoin‘s price is rapidly approaching its anticipated peak at around $100,000, and it seems we may touch that significant figure soon. However, predicting the exact timing for reaching this milestone or the continuation of Bitcoin’s upward trend can be challenging due to market volatility.

An unstoppable trajectory

Bitcoin’s ascent seems relentless, with persistent buying pushing it towards increasingly lofty heights. The psychological barrier of $100,000 is nearly breached, and should it fall, there’s speculation that the price could soar even higher if Bitcoin manages to sustain its position above this mark.

Heavy ETF buying continues

In just the past three days, over 20,000 Bitcoins have been bought by U.S. Spot Bitcoin ETFs. This amounts to more than 44 times the daily minting of 450 Bitcoins. It’s quite possible that this is merely the start.

Beware of potential bull trap

Indeed, a significant psychological threshold like $100,000 could often attract bears to lay a trap. Many individual investors and traders, particularly those from the retail sector, might find themselves eagerly anticipating this level, potentially placing long positions beyond it, some of which may be leveraged.

From the opposite perspective, significant market participants might seek an opportunity to reverse the trend, which could forcefully lower the price again. This could trigger a mass selling panic among the new traders who had just gone long. The cycle might continue in this manner.

Trading is for professionals

In simpler terms, this market is challenging, especially for beginners. If they don’t learn quickly, they may find themselves struggling or getting swept away. Bitcoin was initially intended as a safe haven for people struggling with the conventional monetary system, not as a means to watch their wealth rapidly decline due to sudden market drops.

Regardless of other considerations, this is the truth, and if you’re engaging in trading, it’s crucial to stay sharp and hold an advantage over the larger market, as many simply won’t possess this.

A compelling case can be made that Bitcoin serves as a long-term investment. Individuals who have held onto it for several years have already seen significant returns. Looking ahead, they stand to safeguard not only themselves but also their loved ones against the damaging effects of inflation and currency devaluation.

$BTC breaks through ascending triangle

In simple terms, within a 4-hour span, Bitcoin’s price has surpassed the upper boundary of its rising triangle pattern, as predicted. This breakout is now verified, and Bitcoin is nearing the significant milestone of $100,000 by just a few thousand dollars. The uncertainty lies in when this price will be reached, whether it be today, tomorrow, over the weekend, or at some point in the future.

If the price fails to reach $100,000 (or slightly more), there are two potential areas where it might find support. These could be at the peak of the rising triangle, approximately $93,300, or along the ascending trendline that originates from the highest points of the previous bull market, around $90,000.

Fibonacci extension level targets

Looking at a broader weekly perspective, the first Fibonacci extension level sits approximately at $102,000, not far off. Earlier, I noted that this could serve as an attractive spot for bears to strategically position themselves and potentially capitalize on price movements.

Regardless of whether the BTC price fails to advance from its current position, it’s still possible that after a pullback, the price could rebound and climb above this level again, potentially reaching even higher values. The graph you see indicates potential highs at $155,000 (2.618 Fibonacci extension) and $209,000 (3.618 Fibonacci extension). These are significant goals for the ongoing bull market.

2024-11-21 15:06