Bitcoin, the leader of digital currencies, has once again become the focus of the financial markets this week. Although its price has not officially broken through the $100,000 barrier, various signs indicate that this historic milestone is within reach. Bitcoin holders, after months or even years of waiting, are finally seeing unprecedented returns beckoning them.
Since the beginning of December, Bitcoin's price has been rising as if being pulled by some mysterious force, nearing the exhilarating six-figure price tag. As the saying goes in the stock market, 'the stock market has risks, entering the market requires caution,' the volatility of Bitcoin has also caused many traders' emotions to fluctuate like a roller coaster. Although some can see the potential to earn $100,000, with market fluctuations, this dream could vanish in an instant. Nevertheless, Bitcoin's price has lingered around $100,000 for the second week in a row, enough to drive global investors crazy.
Unlike previous volatility, the recent fluctuations in Bitcoin have been relatively small, leading traders to speculate even more: when will that magical six-figure price tag truly appear? Some predict that this will be a historic moment, marking Bitcoin's official entry into a new era. In this era, Bitcoin will not only be a digital currency but will also become a global investment tool, leading new financial trends.
Looking back, the dollar increase in Bitcoin's monthly candlestick chart in November 2024 set a historical record. This increase not only caused Bitcoin's price to soar but also made global investors see the infinite potential of digital currencies. Many began to reevaluate Bitcoin, no longer viewing it as a high-risk investment tool, but rather as an asset with long-term investment value.
At the same time, the stability of financing rates also provides strong support for Bitcoin's further rise. Although prices are close to historical highs, the financing rates across exchanges remain at controllable levels. This means that there are no signs of overheating in the market, and investors still have enough space and time to position themselves for future trends. This stable market condition provides a solid foundation for Bitcoin's rise.
On the macroeconomic front, the employment data released by the United States this week also attracted attention. As the Federal Reserve's next interest rate decision approaches, the labor market has become the focus of U.S. macroeconomic data releases this week. This data will not only affect the Fed's decisions but will also have a profound impact on the trends of financial assets like Bitcoin. Many investors are closely monitoring these data changes, trying to capture subtle shifts in the market.
In terms of Bitcoin's technical analysis, this week's focus is on the Spent Output Profit Ratio (SOPR). This metric measures whether the price of tokens used in on-chain transactions is rising or falling relative to the price of the previous transaction, indicating on-chain profitability. A golden cross occurs when the 30-day moving average of SOPR exceeds its 365-day moving average. This week, SOPR printed the second 'golden cross' in the current bull market, which many analysts see as a new signal supporting continued upward movement.
CryptoQuant contributor Crypto Dan pointed out: 'After a golden cross occurs, the market usually starts a strong upward trend within 2 months at the latest.' This prediction has excited many investors, who look forward to the forthcoming significant rise that could lead them to financial freedom. However, some analysts remind investors to remain rational and not blindly chase after rising prices. After all, the market is ever-changing, and any slight movement could trigger drastic price fluctuations.
Apart from the SOPR, Bitcoin has formed a 'bull flag' below $100,000. This pattern is typically seen as a brief consolidation phase in an uptrend, indicating that prices are likely to continue rising in the future. Popular trader and analyst Rekt Capital also revealed successful support retesting, believing that Bitcoin has rebounded after successfully retesting the support level of around $91,000. This perspective provides investors with more confidence and support.
Despite the seemingly bright prospects, investors still need to remain vigilant. After all, the Bitcoin market is still full of uncertainties and risks. Any policy changes, market rumors, or technical failures could lead to drastic price fluctuations. Therefore, when investing in Bitcoin, investors need to fully understand market dynamics and risk factors, and develop reasonable investment strategies and risk management plans.
Overall, the Bitcoin market has been dynamic this week, with both exciting upward trends and risks that need to be heeded. For investors, this is a moment full of opportunities and challenges. Only by staying rational and investing cautiously can one remain undefeated in the Bitcoin market. And those who dare to take risks and pursue their dreams may reap unexpected surprises and returns in this unpredictable market.