Bitcoin (BTC) Price Resumes Previous Rally toward $100K amid Robust Fundamentals

by

As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed numerous bull and bear cycles, from the Dotcom bubble to the 2008 global financial crisis. Today, I find myself closely observing the ongoing cryptocurrency market dynamics, particularly Bitcoin (BTC).

On Wednesday, Bitcoin surged over 4%, momentarily reaching $97,300 before dipping back to around $95,300 during Thursday’s early European trading hours. Despite not yet being completely clear of a potential midterm correction, this recent upswing has sparked a significant bullish sentiment within the altcoin market.

As per the most recent market statistics, the overall value of the cryptocurrency market has significantly increased by more than 2% within the last 24 hours, reaching approximately $3.5 trillion at this moment. The price of Ethereum, denoted as ETH, has also risen above $3,599. This surge in price has caused a shift in the crypto market, with more funds being directed from Bitcoin to the altcoin sector.

Over the recent span, I’ve noticed that Bitcoin’s dominance has gradually decreased, sliding from approximately 61% to around 58% currently. This shift can be attributed to the escalating volatility within the crypto sphere. Consequently, over $280 million was swept out of the leveraged cryptocurrency market, with a significant portion affecting short traders.

Major Factors that Contributed to Bitcoin Price Rebound Today

In the last day, the price of Bitcoin has become more optimistic due to strong underlying factors. For example, U.S. Bitcoin spot ETFs saw approximately $103 million in net investment inflow, with no issuer reporting an outflow on Wednesday.

Despite BlackRock’s IBIT not seeing a positive cash flow, Fidelity’s FBTC and Bitwise (BITB) did, totaling approximately $88.2 million collectively. As a result, the combined value of Bitcoin held by US spot Bitcoin ETFs now exceeds $104 billion.

The price of Bitcoin likewise responded to speculation that Paul Atkins, a previous SEC commissioner, is the preferred candidate among the leading transition team members who could take charge of the agency. Furthermore, Atkins is recognized as a crypto-friendly leader who might advance the Web3 sector with a pro-progressive agenda.

After the Israeli security cabinet approved a ceasefire agreement with Hezbollah in Lebanon on Tuesday evening, bullish investors in Bitcoin steered the altcoins towards an uptrend. This development suggests a potential stability in the Middle Eastern market.

As a result, the total Bitcoin’s Open Interest increased to over $62 billion, which suggests significant interest and particularly large-scale investors jumping in. Additionally, it was observed that the total amount of Bitcoin held on centralized exchanges decreased by more than 15,000 units within the last day, now standing at less than 2.3 million units.

Midterm Targets

As per cryptocurrency analyst Michael van de Poppe’s analysis, it is expected that Bitcoin’s price will reach around $100,000 soon, driven by institutional fear of missing out (FOMO). However, he advises traders to be aware that the Bitcoin price might first dip to a support level above $85,000 before resuming its upward trend in the forthcoming weeks.

Great move of $BTC.

The initial exploration has been unsuccessful; the question now arises as to whether we’ll witness a new All-Time High (ATH) or if we’ll retest the lows instead.

I wouldn’t be surprised with a $100K test.

However, it’s risk-on period, which means that altcoins will continue to run.

— Michaël van de Poppe (@CryptoMichNL) November 28, 2024

Looking at the technical perspective, Bitcoin’s price seems to be in an extended phase of a long-term bull market, given that its Weekly and Monthly Relative Strength Indicators (RSI) have surged beyond the 70% threshold.

Read More

2024-11-28 13:09