Bitcoin once again smashed all-time highs, breaking through the $100,000 barrier for the first time and climbing to $103,620. This remarkable milestone marks a price level that many thought was impossible, solidifying Bitcoin’s position as the dominant force in global finance. The recent breakout comes with renewed enthusiasm as market dynamics indicate that Bitcoin’s rally may still have room to grow.
Ki Young Ju, CEO of CryptoQuant, highlighted an important development, sharing an indicator from the top of the BTC cycle that suggests new capital is flowing into the market.
This influx of liquidity has reignited bullish sentiment and signals that Bitcoin’s upward trajectory may extend further. The data reflects growing investor confidence, with institutional and retail players driving demand.
As BTC continues its impressive climb, analysts and traders are closely watching the $100,000 level to gauge whether it can be maintained as strong support. The breakout signals strength, but market watchers warn that volatility could return as the crypto space moves through this historic moment.
Bitcoin’s cap hits signals growth
Since Tuesday, Bitcoin has seen a significant 10% rise, crossing the psychological $100,000 mark and reaching $103,620. The move has reignited bullish sentiment in the market, with many wondering how high BTC can go. CryptoQuant founder and CEO Ki Young Ju shared key findings from his latest analysis, indicating that new capital is fueling Bitcoin’s current rally.
Ki’s analysis reveals that the price cap has increased steadily as realized capitalization increases. From $129,000 to $146,000 in just 30 days, data suggests that Bitcoin’s rally is not yet near its peak. BTC is still far from a bubble at its current price of $102,000.
Ki notes that for BTC to reach the threshold of a bubble, it would need to rise by 43%, to reach a price of $146,000. This suggests that there is still substantial upside potential before Bitcoin faces significant risk of capping.
As Bitcoin’s impressive rally continues, a short-term correction is possible. As BTC reaches new highs, it could experience natural profit-taking and consolidation. However, the influx of new capital indicates that the price of Bitcoin could continue to rise, with the possibility of reaching new all-time highs in the coming weeks. The market remains cautious but optimistic, with analysts closely monitoring signs of a major pullback or correction.
BTC Finally Reaches $100,000: What’s Next?
Bitcoin is currently trading at $102,363, surpassing the much-anticipated $100,000 mark. This price action has sparked renewed optimism in the market, with many expecting a massive breakout if the price holds above this level as support in the coming weeks. The ability to maintain this key price level is crucial to maintaining bullish momentum and potentially pushing BTC to even higher levels.
However, there is a risk if BTC fails to surpass $100,000. A loss of this level would likely result in a correction, as a missed breakout could signal weakness for the bulls. In this scenario, traders and investors could start taking profits, putting further pressure on prices. The market’s response at this level will be crucial in determining the next phase of Bitcoin’s price action, with a failed breakout potentially leading to consolidation or a deeper pullback.
For now, BTC remains in a critical position. A bullish continuation could follow if it manages to maintain momentum above $100,000. However, any sign of weakness in this range would likely trigger caution and profit-taking, potentially leading to a short-term correction before further upside potential is seen.
Featured image of Dall-E, chart by TradingView