As Bitcoin Trades Above $100K—Analysts Reveal What Could Be Next
Bitcoin has achieved a major milestone, reaching six-digit trading levels for the first time since its inception. The cryptocurrency hit an all-time high of $103,679 on Thursday, rising more than 140% so far this year and pushing its market value past $2 trillion.
This achievement has reignited enthusiasm among the investor community, Strengthening Bitcoin’s position As an important participant in global financial markets.
Despite this impressive feat, Bitcoin has experienced a minor correction. At the time of writing this article, it Transaction price was $101,573still up 6% in the past 24 hours.
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What happens next?
Market Intelligence Platform IntoTheBlock weighing Regarding this development, providing insights into Bitcoin’s potential trajectory. The platform’s analysts highlighted that Bitcoin’s limited supply and growing interest from institutional investors and even countries create huge upside potential.
Bitcoin crosses $100,000!
This is an important milestone, but what happens next?
With limited supply and strong interest from large investors (and even countries), the potential seems limitless. However, we recommend looking at previous cycles to assess potential.
This chart shows… pic.twitter.com/5b60oTRJy3
— IntoTheBlock (@intotheblock) December 5, 2024
However, past cycles have shown diminishing returns, with historical post-halving cycle returns at 7,900% in 2013, 2,560% in 2017, and 594% in 2021.
Based on these trends, IntoTheBlock expects the halving price to grow in a more conservative range of 100%-200%, with a peak between $130,000 and $190,000. IntoTheBlock analysts specifically wrote:
So while some are calling for each Bitcoin to be worth $1 million, a more reasonable expectation is 100%-200% return at halved priceplacing the top between 130k and 190k.
However, analysts also pointed out: “That is, of course, unless Bitcoin becomes a global reserve asset.”
Analyze market trends and investor behavior
Meanwhile, a CryptoQuant analyst provided additional insights Bitcoin’s recent performance and market action. The analyst said that Bitcoin buying continues to increase, with the Coinbase Premium Index reflecting strong buying activity in the United States.
The index tracks the price difference between Coinbase Pro and Binance, showing Stay positive Data shows U.S. investors are actively participating.
The analyst stressed the importance of monitoring the index as well as broader trend analysis. For example, during a period classified as the “fear phase,” buyers will retreat and Bearish momentum If this fails to materialize, the market will often create opportunities for strategic entry points.
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If the index remains in the positive zone, it indicates continuation of uptrendmaking the callback the best positioning opportunity. Buying positions should be held until Bitcoin reaches what analysts call the “excess phase,” and profitable positions should be secured to reduce risk.
Featured image created using DALL-E, chart from TradingView
