With Bitcoin (BTC) surging to a new record high of above $107,000, momentum indicators suggest that the asset’s current run is far from over.

Specifically, the maiden cryptocurrency’s Relative Strength Index (RSI) has yet to reach the 90 mark—a level achieved during the past two bull cycles, according to an analysis by financial data platform Barchart in an X post on December 17.

Indeed, Bitcoin’s cycle tops in 2017 and 2021 coincided with the monthly RSI surpassing 90 and currently reads 77.19, far below previous overbought levels.

“Bitcoin’s Cycle Tops in 2017 and 2021 occurred with a Monthly RSI reading above 90. It’s currently only at 77. This train still has room to run,” the platform noted.

The RSI indicator measures the speed and magnitude of price changes. Readings above 70 typically indicate overbought conditions, but previous Bitcoin bull cycles show that the market can stay overbought for extended periods while prices continue to surge.

Bitcoin’s room for further growth

Regarding the possibility of continued price growth, whale transaction data could offer notable insights into what to expect. 

According to prominent on-chain crypto analyst Ali Martinez in an X post on December 17, wallets between 100 and 1,000 BTC have accumulated over 70,000 BTC in the past 48 hours. This accumulation represents a staggering $7.28 billion in Bitcoin.

The sentiment suggests that the market remains optimistic as such transactions often trigger further price growth. In this scenario, with whales acting as catalysts, retail investors might also capitalize on the momentum.

Adding further optimism to the possibility of Bitcoin surging past its record $107,000 is its historical performance in the year following the U.S. elections, which often aligns with its four-year halving cycle.

For instance, following the 2012 election, Bitcoin climbed from $15 to over $1,000 in 2013. Following 2016, it peaked at nearly $18,000 in 2017. Post-2020, the asset hit an all-time high of $69,000 in 2021.

After the November 2024 elections, Bitcoin’s momentum was inspired by Donald Trump’s election, who is widely expected to spearhead the implementation of crypto-friendly policies. 

Additionally, several entities believe Bitcoin will likely double in value next year. Standard Chartered projects the asset’s current cycle will peak next year, potentially reaching $200,000. According to the banking giant, institutional investors will be central to this rally.

At the same time, investment firm VanEck projected that the current run will extend into 2025, peaking in Q1, with Bitcoin likely reaching $180,000.

However, not everyone is fully bullish on Bitcoin. A trading expert warned investors to prepare for an exit, noting that the asset might be nearing its top and that the current momentum may not last long.

Bitcoin price analysis 

By press time, Bitcoin was trading at $107,133, an increase of 3.5% in the last 24 hours. On the weekly chart, the maiden cryptocurrency had made gains of over 5%.

Although Bitcoin remains at a record high coupled with sustained optimism, caution is warranted. As indicated by the RSI, the overbought conditions can lead to a sharp correction.

Not financial advice!
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