Highlights:
- Bitcoin sustains momentum after rallying through $100k
- Bullish momentum driven by Fed Chair acknowledging that Bitcoin is digital gold
- Rally off $100k could push Bitcoin to $200k as the cycle gains momentum
Bitcoin is on a roll today, rallying through the $100k mark for the first time in its history. Today, not only has Bitcoin pushed through $100k but it also appears to be accelerating after pushing through it. At the time of going to press, Bitcoin was trading at $102,881.85, up by 6.15% and gaining.
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Bitcoin trading volumes are also accelerating, up by 82% in the day to hit a high of $126.27 billion. The move Bitcoin has made to date means it has overcome a major resistance level, opening up new possibilities for its future.
Technical Analysis – Bitcoin Price Headed Higher as $100k Resistance Gives Way
From the charts, Bitcoin has been consolidating between $95k and $91,000 for over a week. This is after the recent rally that saw it rally to $99k but failed after hitting a wall of short sellers. With the sudden rally through $100k, it means Bitcoin has liquidated all the shorts at $99k to $100k level.
It also means that buyers who were sitting on the sidelines waiting for the $100k resistance to be overcome are now taking positions in Bitcoin. This opens the way to new highs in the short term, with prices as high as $200k now within the realms of possibility. That’s because the expectations are that $100k now forms a major floor for Bitcoin going into 2025, one that can hold as FOMO builds up across the cryptocurrency market.
Fed Chair Calls Bitcoin Digital Gold
Multiple factors support the continuation of the momentum that Bitcoin price has built up in the last 24 hours. One of them is the expectation that the Federal Reserve will cut interest rates for a third time this year. This as the Federal Reserve Chairman, Jerome Powell has stated that the US economy is in good shape, which gives the Fed some room in its decision-making.
Powell also had something positive to say about Bitcoin, noting that it was like Gold, only that it is in digital form. He also moved to quell fears that Bitcoin was undermining the Federal Reserve. He stated that Bitcoin was more of a gold competitor than a dollar competitor.
Jerome Powell Live at DealBook Summit 2024 https://t.co/rw4fWXJioI
— Andrew Ross Sorkin (@andrewrsorkin) December 4, 2024
Going After Gold’s Market Cap
Jerome Powell’s statements have led to excitement that the next step for gold is to go for, and potentially surpass Gold’s market cap. With the market cap of gold at $17 trillion, and gold now only at $2 trillion, it means there is substantial room for Bitcoin growth going into the future. The chase for Gold’s market cap could trigger Bitcoin FOMO, one that could see its value rallying from this point to prices above $200k in the current cycle.
BREAKING: $103,000 #Bitcoin 🔥 pic.twitter.com/z5xmHyM1N3
— Swan (@Swan) December 5, 2024
Bitcoin Price Still Early in Its 4-Year Cycle
Bitcoin is also likely to continue drawing excitement from the fact that the market is within the 4-year cycle. This would mean that the current cycle could continue to late 2025. Essentially, Bitcoin price has crossed the $100k mark way early into the cycle, putting the potential for a rally to $200k or higher, in the short to medium term. This is evident in the rising volumes that point to growing excitement around Bitcoin at the moment.
Institutional FOMO is also on the rise for Bitcoin. Bitcoin ETFs continue to record strong inflows and could get even stronger now that the price has crossed a major resistance level. This could open the way for a continuation of the momentum that Bitcoin has built so far.
Recap
Bitcoin has in under 24 hours overcome a key resistance level at $100k. This opens the way for a rally to new highs as FOMO builds up. The Fed Chairman acknowledging that Bitcoin is digital gold could help sustain the momentum built up so far, as Bitcoin enters a new price frontier.
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