Bitcoin Hits $100k Whats Next?
On 5 December 2024, Bitcoins price surpassed the landmark $100,000 per coin for the first time. It has taken less than 16 years for Bitcoin to rise from near-zero levels to six figures.
The BTC/USD chart reveals:
On 5 November, Bitcoin was trading below $70,000.
By 5 December, the leading cryptocurrency peaked around $103,500, marking a nearly 50% increase in just one month.
Key Drivers of Bitcoins Surge
The primary catalyst for this surge appears to be Donald Trumps victory in the presidential election. Trump celebrated Bitcoins milestone, and the crypto community is buzzing with enthusiasm over:
Trumps National Crypto Reserve Proposal: Reports suggest Senator Cynthia Lummis is backing legislation to require the government to purchase 1 million BTC (approximately 5% of the total supply) and hold it for at least 20 years.
Leadership Changes: SEC Chair Gary Gensler, a well-known crypto critic, is stepping down on 20 January. Entrepreneur and investor David Sacks will oversee AI and crypto policy in the Trump administration.
Massive Inflows into Bitcoin ETFs: The Bitcoin ETF is being hailed as the fastest-growing ETF in history.
However, not everyone shares the optimism. Former U.S. Treasury Secretary Lawrence Summers criticized Trumps reserve proposal, calling it madness and a political manoeuvre to appease campaign donors.
I understand the need for a strategic petroleum reserve; I understand why we stockpiled gold in Fort Knox a century ago. But why would the government back Bitcoin by hoarding a useless reserve? Summers told Bloomberg TV on 6 December.
Whats Next for Bitcoin?
Technical analysis of the BTC/USD chart suggests that Bitcoins price formed an upward channel (shown in blue) in November. However, the break above the psychological $100k level stalled before reaching the channels upper boundary, with resistance emerging at its median line (indicated by an arrow).
This suggests that holding above $100k might be challenging for bulls. Additional evidence includes:
Yesterdays sharp drop to $92,000.
The emergence of pivot points indicating a potential new channel (shown in orange), with a shallower incline.
Still, as long as BTC/USD remains within these channels, it may be premature to anticipate a bearish outlook.
Read more: https://fxopen.com/blog/en/oa-bitcoin-hits-100k-whats-next/
Text source: Forex Trading Blog
