Bitcoin, the leader of digital currencies, has once again become the focus of the financial market this week. Although its price has not officially broken through the $100,000 mark, 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 to them.
Since the beginning of December, Bitcoin's price has been like being pulled by some mysterious force, climbing steadily, approaching that thrilling six-figure price tag. As the old saying in the stock market goes, 'The stock market has risks, and one must be cautious when entering.' The fluctuations of Bitcoin have also caused many traders' emotions to swing like a roller coaster. Although some can see a way to earn $100,000, with the market's volatility, this dream may vanish in an instant. Nevertheless, Bitcoin's price has hovered around $100,000 for the second consecutive week, enough to drive global investors crazy.
Unlike past fluctuations, the recent volatility of Bitcoin has been relatively small, which has led traders to speculate 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 brand new era. In this era, Bitcoin will not just be a digital currency but will become a global investment tool, leading a new financial trend.
Reviewing the past, 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 reassess Bitcoin, no longer viewing it as a high-risk investment tool but as an asset with long-term investment value.
Meanwhile, the stability of financing rates has also provided strong support for Bitcoin's further rise. Although prices are nearing historical highs, financing rates across exchanges remain at controllable levels. This means that the market shows no signs of overheating, 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.
In terms of the macro economy, the employment data released by the U.S. this week has also attracted much attention. With the Federal Reserve's next interest rate decision approaching, the labor market has become the focus of this week's U.S. macroeconomic data release. This data will not only affect the Federal Reserve'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 indicator measures whether the price of tokens used in on-chain transactions has risen or fallen compared to 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 upward continuation.
CryptoQuant contributor Crypto Dan pointed out: 'After a golden cross occurs, the market usually starts a strong rise within two months at the latest.' This prediction has excited many investors, who are looking forward to the upcoming substantial rise leading them to financial freedom. Some analysts also remind investors to remain rational and not to blindly chase prices. After all, the market is ever-changing, and any slight movement can trigger significant price fluctuations.
In addition to the SOPR, Bitcoin has formed a 'bullish flag' below $100,000. This pattern is usually seen as a brief consolidation phase in an upward trend, indicating that future prices will continue to rise. Popular trader and analyst Rekt Capital also revealed a successful support retest, believing that Bitcoin has rebounded after successfully retesting the support level of about $91,000. This perspective provides investors with more confidence and support.
Although the outlook seems bright, investors still need to remain vigilant. After all, the Bitcoin market is still full of uncertainty and risk. Any policy changes, market rumors, or technical failures could trigger significant price fluctuations. Therefore, when investing in Bitcoin, investors need to fully understand market dynamics and risk factors and formulate reasonable investment strategies and risk management plans.
Overall, this week has seen a dynamic Bitcoin market, with both exciting upward trends and risk factors that need vigilance. For investors, this is a moment filled with opportunities and challenges. Only by remaining rational and investing cautiously can one maintain an undefeated position in the Bitcoin market. And those daring to take risks and pursue dreams may reap unexpected surprises and rewards in this volatile market.