Key Takeaways
- Bitcoin is close to hitting the $100,000k threshold, trading at $90,220 after significant gains.
- Recent CPI data point to potential interest rate cuts, boosting positive Bitcoin sentiment.
- A short-term price correction may occur, with support levels around $87,655 and $80,478.
Bitcoin (BTC) is making headlines as it inches closer to the speculated $100k mark. It is another day of impressive gains for Bitcoin (BTC), which has reached a new all-time high of $93,434 for the ninth consecutive day. At the time of writing, Bitcoin was trading at $90,220, marking a 20% gain in a week.
The recent rise in Bitcoin’s price was partly due to the new Consumer Price Index (CPI) data being released. The CPI measures how prices for goods and services are changing. In this case, the data showed a slight increase from 2.4% in September to 2.6%.
This increase in CPI has led people to think that the central bank might lower interest rates in the future. Lower interest rates can be good for Bitcoin because they may encourage more people to invest in it. This overall situation has led to increased positive feelings about Bitcoin’s future value.
Bitcoin prices have soared more than 34% from $69,322 to their current record-breaking levels since Donald Trump won the election last week. According to its market cap, Bitcoin now holds $1.78 trillion, surpassing Saudi Aramco and ranking seventh among global assets.
Many analysts have predicted that Bitcoin will reach $100,000 within the next few weeks. Furthermore, there is speculation that the cryptocurrency could even become the US’s reserve currency following the election of Donald Trump.
During his election campaign, Trump pledged to make US the crypto capital of the world. This claim sparked the $100k price speculation for the Bitcoin post trump’s victory. However, there are also debates on the implications of Trump’s policies on the crypto market and the broader economic outlook for the United States.
Furthermore, institutional investors are flocking to Bitcoin, primarily through recently available exchange-traded funds (ETFs), and heavyweights are considering it as a reserve asset. A total of $8.07 billion was traded in Bitcoin spot ETFs on Nov 13 alone. In terms of volume, BlackRock’s ETF alone hit a new record of $5.37 billion.
Bitcoin’s Bullish Momentum and Potential for Short-Term Correction
A bullish momentum can also be seen on the charts. Bitcoin’s 4-hour chart has recently broken above both the 100-day and 200-day moving averages, with the 50-day crossing above both, signaling a strong buying uptrend.
However, as the BTC price has reached the upper boundary of the channel, consolidation may be on the horizon. There is likely to be a period of distribution near this level, followed by a slight correction back to the channel’s middle boundary around $85K. To validate this, BTC is currently priced at $90k.
There is likely to be a brief correction in the market, with support zones at the Fibonacci retracement levels around $87,655 (0.23) and $80,478 (0.5). These levels may offer a chance for profit-taking and re-entry in the mid-term.
The 4-hour chart of Bitcoin indicates strong buying pressure, as indicated by its Chaikin Money Flow (CMF) reading of 0.23. This means that a healthy correction in prices could create more chances for smart buying opportunities.
Looking ahead, the next major price targets for Bitcoin are $94,000 and $95,000, which could pave the way for hitting the important $100,000 mark.
