- Bitcoin’s all-time high near US$100k sees resistance as the rally comes to a slow-down.
- MicroStrategy’s recent Bitcoin purchases contrast with fears of a large-scale sell-off due to the US government moving US$2 billion worth of Bitcoin to exchanges.
- A golden cross indicator suggests a significant market rally could occur by early 2025, driving Bitcoin towards new peaks.
Bitcoin’s quest to US$100k is becoming an arduous one, at least if you’re impatient like most people. We had been so close to it too, reaching the all-time high of $US99,655 (AU$153,890) on 23 November.
Related: Altcoin Season Is Here, Analyst Explains How to Turn $1k Into $10k
Ever since it has been trading in a narrow range, touting a new high and breakthrough but not quite getting there. Following the Trump rally, it seemed we might march straight to US$100k, but it appears bulls are stalling, struggling to break that barrier.
Multiple Factors Influencing Bitcoin Price
Although there’s strong institutional interest and Michael Saylor’s MicroStrategy just loaded up on more BTC while he pitched the coin to Microsoft, there’s also concern over the US Government transferring US$2 billion (AU$3 billion) of Bitcoin to exchanges.
This could well be a move to sell, and given the large amount, it may spook investors. There’s also the altcoin boom, with assets like XRP, ADA, LINK, and others rallying by 30% or more, possibly due to investors rotating their allocations.
Director of research at Cumberland Labs, Chris Newhouse, told Bloomberg:
While we’re seeing strong institutional buying pressure, particularly from entities like MicroStrategy’s continued accumulation strategy, the broader crypto ecosystem is experiencing a diversification of capital flows from both institutional and non-institutional participants.
Chris Newhouse, Cumberland LabsThe $100,000 price point for Bitcoin is also proving difficult to surpass with US$384 million (AU$594 million) worth of BTC for sale up to that target.
Yet the growing illiquid supply, which has increased by 185,000 BTC in the last 30 days to an all-time high, indicates strong holding behaviour among long-term holders and hints at potential upward price pressure.
Analyst Believes Bitcoin to Have a Strong Couple Months Ahead
Meanwhile, the analysts over at CryptoQuant believe that the road to success is clear and within reach in the next 1-2 months.
A golden cross of the SOPR Ratio indicator, which can only occur in a bull market, has appeared. This signal occurs only once or twice in the entire upward cycle, and it is the second positive signal in the current upward cycle that started in January 2023.
CryptoQuantThey added that the appearance of a golden cross in the market typically signals a strong rally within two months, likely marking a sharp rise as the upward cycle nears its final phase.
Related: US Spot Bitcoin ETFs Close November with Record-Breaking Inflows
As 2024 ends and early 2025 approaches, the anticipated steep rise could attract new investments and funds, potentially driving the market to its peak, their analysis concluded.
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