Bitcoin has surpassed the $99,800 mark to hit a new all-time high, and is just one step away from the psychological $100,000 mark. Although this milestone indicates that the price of Bitcoin is strong, it has not yet reached this key level, which makes investors uneasy. Market demand remains strong, which makes people optimistic that Bitcoin will soon break the $100,000 mark.
CryptoQuant's key data shows that Bitcoin's realized profits have reached an all-time high, with daily gains of $443 million. This highlights the huge buying pressure in the market as traders and long-term holders lock in unprecedented profits. However, this record profit-taking has also raised concerns among some investors. They worry that the rally may be stalling, interpreting the surge in realized profits as a potential signal of a localized topping scenario.
Despite these mixed signals, the overall market sentiment remains bullish. Bitcoin continues to hold above key support levels, suggesting that demand remains strong enough to drive the next leg higher. With the cryptocurrency on the verge of a major breakout, the coming hours and days will determine whether Bitcoin’s momentum can sustain a decisive move above $100,000 or if a temporary consolidation is imminent.
Bitcoin's rally may continue to exceed $100,000
Bitcoin's rally from $66,800 to $99,800 marks a unique and unexpectedly bullish phase through 2024. As prices approach the elusive $100,000 milestone, many investors who doubted Bitcoin could reach that level this year are now revising their expectations. Strong demand and market confidence have fueled the surge in Bitcoin prices, and a breakout above $100,000 seems inevitable. If that happens, analysts generally expect Bitcoin to continue its bullish run, further solidifying its dominance in the cryptocurrency space.
However, market dynamics suggest that the journey to $100,000 may not be smooth sailing. A correction at this stage is not only possible, but could be beneficial to the health of the market. A pullback would provide an opportunity for consolidation, potentially giving altcoins room to recover and initiate their own rallies.
The aggressive nature of the rally is revealed in a key insight from CryptoQuant analyst Maartunn. Data shows that Bitcoin’s realized profits recently hit a new daily record high of $443 million, reflecting a large amount of profit-taking activity. While this confirms strong buying pressure, it also raises concerns among cautious investors, who interpret the surge in profits as a potential sign of a local top.
Despite these concerns, Bitcoin’s trajectory still has room to grow. Maintaining support above $95,000 will sustain the bullish momentum, but a healthy correction from current levels could also provide the necessary momentum to break above $100,000 in the near future.
BTC tests critical supply
Bitcoin is currently holding firm above the $97,000 mark, maintaining bullish momentum towards a breakout above the $100,000 mark. This level represents an important psychological and technical barrier, and market sentiment remains optimistic about Bitcoin’s potential to break through this barrier. As demand remains strong, many investors are preparing for an explosive surge in Bitcoin that could determine its trajectory in the coming weeks.
However, there are growing concerns that Bitcoin could hit a local top. If this scenario materializes, prices could enter a consolidation phase that could last for weeks as the market digests recent gains. Analysts believe that sustaining above $98,000 for the next few days will maintain bullish momentum and pave the way for a breakout above $100,000.
On the other hand, if Bitcoin fails to hold the $97,000 mark, it could signal the start of a healthy correction. In this case, the price could retrace to the $92,000 level, a key demand area that could act as strong support. A pullback to this level would allow Bitcoin to regain momentum and set the stage for another move higher, thus consolidating its long-term bullish trend.