Bitcoin Rally Benefits From US Buyers
Bitcoin has surged to the $99,800 mark, setting another all-time high and getting closer to the psychological milestone of $100,000. Despite briefly testing the level, Bitcoin has yet to break out, leaving investors and analysts eager to see where it will go next. As demand remains strong, Bitcoin appears to have broken through this key barrier in the coming days.
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The latest data from CryptoQuant highlights a significant factor driving this rally: the Coinbase premium gap, currently at $224. The indicator, which represents the price difference between Bitcoin on Coinbase and other global exchanges, indicates strong buying activity from U.S. Coinbase investors.
The continued upward momentum further solidifies Bitcoin’s dominance of the cryptocurrency market, with many viewing the $100,000 level as a key supply area. Although the price has not yet broken throughThe ongoing rally reflects a growing belief that Bitcoin’s parabolic bull phase is far from over. As the market approaches this critical moment, all eyes are on whether Bitcoin can maintain its momentum and reach new highs, setting the tone for the coming weeks.
Bitcoin price action remains strong
Bitcoin has been in an “up only” phase since November 5, showing no signs of weakness as it continues to climb to new heights. Even though it failed to break the $100,000 mark yesterday, the price action remains exceptionally strong. Bulls have a firm grip on Bitcoin and if it remains above key demand levels, the long-awaited $100,000 milestone could be breached within hours.
CryptoQuant analyst Maartunn revealed that demand from U.S. investors is strong is the key driving force behind this rebound. According to his data, the Coinbase Premium Gap, a metric that tracks the difference in Bitcoin prices on Coinbase and other global exchanges, is $224.
This positive premium highlights buying activity in the United States as a significant factor in the current bullish momentum. A high premium usually indicates that investors on Coinbase are willing to pay more than others, which is a strong indicator of increased demand.
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With markets closely watching, Bitcoin’s ability to sustain its upward trajectory depends on staying above important support levels. The psychological resistance of $100,000 remains daunting, but the unyielding appetite of U.S. investors points to continued strength in the coming days. With such solid fundamentals, many analysts believe that Bitcoin will usher in another explosive rally once the $100,000 barrier is cleared for good.
BTC rally has just begun
Bitcoin is currently trading at $98,800 after failing to break through the much-anticipated $100,000 mark. Despite the temporary setback, price action remains firmly bullish as Bitcoin continues to hold above key demand levels, demonstrating the resilience and strength of the current market. Price’s failure to pull back suggests bullish momentum remains intact, making investors optimistic about a potential breakout.
If BTC holds above the key support of $95,000, the likelihood of a break above the psychological $100,000 mark increases significantly. Staying above this level would indicate strong buyer interest and the potential for further gains, paving the way for Bitcoin to resume its upward trajectory in the near term.
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However, if Bitcoin fails to hold above $95,000, a pullback into lower demand areas will confirm a short-term pullback. This pullback could provide the necessary impetus for the next rally, as it will allow the market to consolidate before another attempt to break above the $100,000 mark.
Currently, all eyes are on Bitcoin’s ability to defend its key support levels as markets anticipate the next big move in this historic rally.
Featured image from Dall-E, chart from TradingView
