Bitcoin has entered the “Euphoria Zone” as the cryptocurrency looks set to break the $90,000 barrier — and could soon move past the $100,000 mark.
That’s according to crypto analyst James Check, who described the Euphoria Zone as the point in the cryptocurrency’s cycle when the price starts to skyrocket at an accelerated pace as investors pump new money into the ecosystem.
“In the Euphoria Zone, we move into bulking mode, and can get more aggressive with both our weights, and our diet,” Check wrote on Monday in his newsletter Checkonchain. “The market wants to trend higher, and that means a little greed (but not too much) can pay off.”
His comments come on the back of a recent red-hot rally in Bitcoin and other cryptocurrencies after months of relatively flat trading.
The election of Donald Trump as the next US president triggered the rally last week. Industry leaders expect him to deliver on his pro-industry pledges.
Check’s conclusion? That the months of Bitcoin being in a corrective phase after its previous high are over, and it’s time for traders to put their “mindset into bull market mode.”
How high?
How high Bitcoin’s price will go is a key question for investors. Analysts have speculated that the cryptocurrency could surge to between $90,000 and $125,000 this year alone.
Check estimates Bitcoin’s price will range between $109,000 to $124,000 by the beginning of 2025.
Bitcoin will surge that high because investors who’ve held the cryptocurrency for longer than six months are most likely to sell as it approaches $94,000, Check said.
Matt Hougan, chief investment officer at Bitcoin exchange-traded fund provider Bitwise, echoed that sentiment.
“Everyone is focused on new people buying bitcoin. That’s very real,” wrote Hougan on X on Monday.
“But an equal part of this rally is that people have stopped selling. Long-term owners are no longer willing to part with Bitcoin below $100,000, and short-sellers don’t want to step in front of a freight train.”
Others think Bitcoin can make a move to six-figures within a day but will need conviction to do so.
Matthew Mena, research strategist at 21.co, told DL News, “Looking ahead, if Bitcoin can decisively break through the $90,000 level with convincing volume, we may see a swift move toward $100,000 that same day.”
However, he claims that this time, traders are “taking profits as soon as BTC approaches $90k, in fear of making the same mistake they made last cycle.”
Some caution
Scott Melker, renowned crypto analyst, agrees with Check about the euphoric state of the market, but highlighted the ugly underbelly of this moment: volatility.
“I expect a ton of volatility,” he said in his latest newsletter. “That said, there’s little reason to believe that Bitcoin is done, as the cycle should just be getting started.”
He added: “It’s winning season.”
Pedro Solimano is a Markets Correspondent at DL News. Got a tip? Email at psolimano@dlnews.com.
