Why Is Bitcoin Going Up? How High Can Bitcoin Go?
Bitcoin finally breaks through $100,000. BTC has gained 7% over the past three days and is up 4% today, reaching a high of $104,630 before falling back to $101,132. This gives the crypto community new hope that the bull cycle is still continuing.
Let’s analyze what’s happening in the market and why Bitcoin is rising today.
Bitcoin hits $100,000
The $100,000 mark is a very heavy psychological resistance level for Bitcoin, which it has broken through this morning. When we discuss how new buying supports prices and drives prices higher, we see heavy volumes pushing prices higher.
The Fear and Greed Index recorded 84 this morning, indicating that the market still has buying potential. The largest cryptocurrency needs to consolidate support as there is no moving average to help in this area.
How high can Bitcoin go?
The RSI is currently at 76.41, showing that the bulls are attacking, but it will soon enter the overbought zone and must calm down. On the other hand, ADX is at 17.57, which is quite low, but has started to rise. Bitcoin trading volume is huge, rising 35% in the past 24 hours, with most of it occurring in the last hour. Bitcoin trading volume has reached nearly $100B, which has pushed the total cryptocurrency market capitalization to $3.69 trillion at 4.97%. Bitcoin’s dominance in the market is 55.5%, which is relatively low.
There are many factors that give Bitcoin its strength. The most influential, according to experts, is pro-cryptocurrency President Donald Trump. The cryptocurrency market has gained significant momentum since the U.S. election, with Bitcoin and altcoin prices rising significantly. The community is becoming relaxed about cryptocurrencies as Trump is working to bring crypto supporters into his administration.
Will Bitcoin crash? What’s next?
As Bitcoin breaks through $100,000, it’s clear that the alt market will soon follow suit. There is no single reason for Bitcoin’s rise today, but it is the collective force of several factors. BTC is expected to hit $120,000 soon, but rising RSI signals a cooling off. Furthermore, the market tends to take advantage of such situations.
People enter the market with tremendous confidence and greed, and this is a good time for the market to contradict them. Just in the last hour, more than $130 million worth of funds were liquidated, mostly from short sellers. The market will take steps back to retest support, and if it fails to do so, prices may plummet in panic. We may also see significant inflows into Bitcoin ETFs, but investors should proceed with caution.
