Bitcoin, the largest cryptocurrency by market cap, is caught up recently in an unstoppable rally that has caused a buzzing in the crypto market.
With dominance at 61% and price currently at about $97,000 but heading towards $100k, many BTC investors believe that before hitting the $100k mark, Bitcoin may experience a mean pull back briefly for about a week or two before popping over $100k.
Bitcoin Dominance Hits 61% As Price Soars Close To $100K, Moon or Pullback?
Since the conclusion of the US presidential election and Trump’s emergence as the president-elect, the price of Bitcoin has been on a bullish ride, which has the market buzzing.
On Thursday, November 21, the price of Bitcoin rose to about $97,765, recording a mouth-watering 45% gain in just 16 days.
At press time, Bitcoin’s price is hovering around $97k, but all crypto enthusiasts are anticipating one thing right now, which is the $100k mark.
Will Bitcoin break through this milestone (mooning), or will resistance hold it back (pulling back)?
What’s Currently Behind Bitcoin’s Bullish Move?
There are many reasons why Bitcoin is exploding right now. The biggest one is Donald Trump’s victory at the just concluded US election.
Post-Trump’s re-election, BTC has added more than $28k to its value, an increase of over 3x from its price a year ago.
Also, Bitcoin’s dominance has hit 61.5%, the highest since 2021, which lifted the total cryptocurrency market capitalization to a massive $3.28T.
Another reason is the whale’s activity. Recently, a whale acquired 3,289 BTC, which is worth $300M. The US Bitcoin ETFs is another reason, where BlackRock’s IBIT saw $628M in inflows on the same day.
The launch of two Spot Bitcoin ETF Options also add support for Bitcoin to rise.
All these moves further tightens the already scarce Bitcoin supply.
Is Bitcoin At $100K Feasible?
Here is the big question!
BTC is just about 2% away from reaching the $100k benchmark, but the crypto is facing mounting resistance. Sell walls between $98k and $100k are making it tough for the price of Bitcoin to push higher.
Also, overbought signals are flashing red. For instance, the Relative Strength Index (RSI), a key momentum indicator that measures the magnitude of recent price changes to analyze overbought or oversold conditions, is currently at 81.01 on the daily chart.
Is it sufficient to say that this is the level where pullbacks often happen?
ETF Store’s Nate Geraci stated it more explicitly,
“There’s only so much to go around.”
Capriole Fund’s Charles Edwards thinks scaling the $100K milestone could trigger what he termed a “teleportation phase” where Bitcoin prices may rise up even faster once retail investors jump in.
Whatever it is, one thing is certain for now. Bitcoin is at a break-or-make point, and the growing excitement is waning anytime soon.
If BTC clears the $100k mark, then it would keep rising. However, the whales are watching and short-term corrections are possible.
