Bitcoin rallied to a new all-time high of $93,477 this week just days after pro-crypto candidate Donald Trump won the elections.
Over the past week, the benchmark crypto has surpassed Silver in market capitalization and soon after Saudi Aramco, as its market cap managed to surpass $1.81 trillion for the first time.
The intense demand for Bitcoin was seen among both retail and institutional investors.
Bitcoin has been trending on Google over the past week, as analysts at Matrixport pointed out in a recent report that the demand among retail investors was high, which was evident from BTC’s daily trading volume which hit record highs on Nov 12.
Adding to this momentum, much of the recent rally was fueled by spot buying according to Crypto commentator Byzantine General who highlighted that Bitcoin’s open interest remained low even as the price climbed.
This suggests there isn’t excessive leverage in play, which is favorable for a steady rally.
Institutional players have also remained active, with inflows into US spot Bitcoin ETFs surpassing $4 billion since Nov. 6.
Bitcoin to $100,000 is highly likely
With multiple bullish catalysts in action, analysts at Bitfinex are confident that $100,000 is possible within the next few months.
According to them, Trump’s recent victory is the key driver that could push BTC past this major milestone, alongside the fact that the economy has recently avoided a recession, which helps maintain investor confidence and keeps liquidity flowing into assets like Bitcoin.
They believe that Bitcoin is now likely to trade within a stable range and accumulate value, setting the stage for a potential move toward the $100,000 target.
A bullish case for Bitcoin also came from Matthew Sigel, head of digital assets at VanEck, who envisions Bitcoin reaching $180,000 by the end of this bull cycle.
His prediction is based on past post-election rallies and several technical indicators, which he says are all flashing green for this cycle.
Sigel expects the leading cryptocurrency to keep setting new highs over the coming months, supported by the soon-to-take-over “pro-Bitcoin” administration. However, he noted that, as in previous cycles, there will be corrections along the way.
On the other hand, Ryan Lee, chief analyst at Bitget Research, believes Bitcoin could reach the six-figure mark by the end of November, just two weeks away. He points to historical patterns that he expects will repeat this time.
November is typically the best month for Bitcoin in terms of returns, where the crypto asset has posted average gains of over 44% since 2013.
At press time, Bitcoin was up over 26% this month, which means there’s still room for growth if history were to repeat as suggested by analysts.
BTC likely to correct before $100k
On the 1-day BTC/USD chart, Bitcoin has been in overbought territory, with the RSI above 75. Recently, the RSI has started to dip, suggesting that the strong buying pressure may be easing.
This early sign of cooling off could mean Bitcoin is due for a brief consolidation or pullback, allowing it to stabilize after the recent rally.
The moving averages supported a positive outlook, with Bitcoin well above both the 50-day and 200-day lines, and a recent golden cross boosting confidence in the trend.
The price was also near the upper Bollinger Band, which suggests that while upward momentum is strong, a period of consolidation could help steady the rally.
At press time, Bitcoin was retesting support levels around $87,500, down 5%, indicating that it seemed to be already entering a correction phase.
Per analyst Rekt Capital, BTC was attempting to test its previous resistance levels around $88,715 and $88,018, aiming to establish these areas as new support.
Based on the Bollinger Bands, in the shorter term, holding support around $88,018 and $87,500 could provide a stable foundation for Bitcoin to resume its rally and potentially push toward the $100,000 mark.
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