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Bitcoin's Next Target: $100,000

Bitcoin's Next Target: $100,000

Beginner
2024-03-12 | 5m

As Bitcoin passes the $70,000 mark and keeps reaching new heights, there's a lot of excitement about its future. People from different areas are showing more interest in Bitcoin, making it a crucial time for this cryptocurrency. Through technical analysis and observation of market sentiment, we're going to look into whether Bitcoin could go over $100,000 soon and what that would mean for the world of cryptocurrencies.

The Path to $100,000

From a technical analysis point, Bitcoin's trajectory exhibits a robust upward momentum. The recent months have witnessed a consistent price elevation, interspersed with periodic corrections and recoveries. The big moment was when it went past the $70,000 benchmark, setting a new record. This isn't just about numbers – it shows that people are really starting to believe in Bitcoin.

The fervor extends to the derivatives realm, with a notable surge in optimistic bets in the options market, predicting Bitcoin's climb beyond $80,000 and even $100,000. Data shows that the open interest in call options with strike prices of $80,000 and $100,000 has increased by about 12% each after Bitcoin broke through $70,000, signaling sustained bullish sentiment. Interestingly, the volatility and leverage in the options and futures markets are low, indicating that last Friday's price increase was primarily driven by demand in the spot market. Retail investors tend to buy tokens in the spot market rather than using derivatives.

Bitcoin's Next Target: $100,000 image 0

Source: Coinglass

From a technical indicator perspective, the Moving Average Convergence Divergence (MACD) shows a clear upward trend, indicating that buying pressure remains strong. Meanwhile, the Relative Strength Index (RSI) is in overbought territory, indicating that market sentiment may be overly optimistic. However, this does not rule out the possibility of Bitcoin continuing to rise, as in such cases, the overbought condition may persist for some time.

Daily Average Purchase: 4,000 Bitcoins

The advent of Bitcoin spot ETFs this January ushered in a deluge of capital inflows - underscoring a burgeoning demand. According to Mark Connors, research director at cryptocurrency asset management company 3iQ, since their launch in January, these new ETFs have been buying an average of 4,000 Bitcoins every day - far exceeding the 900 Bitcoins created by the Bitcoin network every day.

With Bitcoin halving expected to occur this April, Bitcoin is expected to see more supply shortages this year. After halving, the daily supply of new Bitcoins will decrease from 900 to 450.

Connors' company's fundamental target is for Bitcoin to reach $110,000 in 2024 and $140,000 in the following year. The company believes that if FOMO sentiment is added, Bitcoin will reach $180,000 this year and $450,000 in 2025.

Galaxy Digital's research director, Alex Thorn, said, "Bitcoin is currently one of the scarcest assets in the world and is becoming increasingly scarce."

Why $100,000 Matters

If Bitcoin hits $100,000, it's a big deal. It's a symbolic marker enhancing Bitcoin's gravitas, beckoning a broader investor demographic to the crypto domain. This ascension underscores a 'Matthew Effect,' magnetizing a burgeoning investor base, thereby catalyzing the digital currency's mainstream adoption.

In summary, reaching $100,000 would signify a new chapter for Bitcoin, showing it's a strong and growing part of the financial world. Even with all the excitement, it's smart for investors to remain cautious and closely monitor market changes.

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

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