Highlights:
- Bitcoin is currently gaining bullish sentiment after rallying through $91,030 resistance
- Rally puts Bitcoin on course to $100k
- An improving political climate makes such a price rally possible
Bitcoin is in the green today, building on the upside momentum it built over the weekend. In the last 24 hours, Bitcoin has gained marginally by 0.75% and was trading at $91,822.17 when going to press. While this gain is negligible, it points to the underlying momentum around Bitcoin at the moment. The charts also seem to confirm a similar scenario.
Advertisement
Technical Analysis – Bitcoin Price In a Breakout After Consolidation
From the charts, Bitcoin is breaking out after a few days of consolidating between the $91,858 resistance and $87,119 support.
This is an indicator that bulls are firmly in control and could push Bitcoin to new highs soon. A rally from this point onwards would put Bitcoin on course to hit a high of $100k in the short term.
Bitcoin Continues to Get Political Support
Bitcoin continues to get a lot of support especially after Donald Trump won the election. Besides Trump himself, even some quarters that were initially skeptical of Bitcoin and now increasingly speaking positively about it. One such person is the Minneapolis Fe President Neel Kashkari. In the past, Kashkari has been critical of Bitcoin, even calling for its outright ban.
However, he seems to have changed his stance, noting that he is open to considering its role in the economy. This is a boost for Bitcoin which already faces potentially more favorable regulations in the US now that Donald Trump is president. It adds to the expectations that a Bitcoin Reserve could soon become a reality in the US.
RFK Jr is another important political figure who continues to show his support for Bitcoin. RFK Jr has stated openly that most of his wealth is in Bitcoin, arguing that it is a good hedge against inflation. In a video, RFK Jr has called Bitcoin the currency of freedom, and with his huge following on social media, could sway a lot of minds. Such voices that have influenced becoming pro-bitcoin could help sustain the rally that started when Donald Trump won the election.
Bitcoin is the currency of freedom , a hedge against inflation for middle class Americans,a remedy against the dollar’s downgrade from the world’s reserve currency, and the offramp from a ruinous national debt. Bitcoin will have no stronger advocate than Howard Lutnik.
— Robert F. Kennedy Jr (@RobertKennedyJr) November 16, 2024
A 2020 Bitcoin Price Prediction Coming True
Investors are also getting hyped by a prediction made back in 2020 on how much Bitcoin can make a person a millionaire. In a Reddit post, Jim Euclid posted that back in 2020, a person needed 100 Bitcoins to become a millionaire. He predicted that in 2024, this would drop to 10 Bitcoin, which means Bitcoin would hit $100k in 2024.
He further predicted that by 2028, one would only need 1 Bitcoin to be a millionaire and only 0.1 Bitcoin by 2032. This prediction appears to be coming true, as Bitcoin could only be days away from hitting $100k. This means it could easily be closer to his 2028 prediction in 2024. Such predictions coming true, and the desire to become a millionaire could add to the hype that is already building up around Bitcoin at the moment.
These predictions also reinforce those of top banks like Standard Chartered, which predicted that Bitcoin could rally to $250k in this cycle. Such lofty predictions, coupled with the increasingly favorable political environment, make the case for a parabolic price run for Bitcoin plausible.
Rally Off Key Support Could Trigger FOMO
In the short term, Bitcoin could also get a boost from the fact that it has jumped off its dip since the election-triggered rally started. There were a lot of investors who were sitting on the sidelines waiting for a buying opportunity to present itself in the form of a dip.
This happened after Bitcoin dipped to around $88k. Now that it has rallied off this dip, investors get the impression that the underlying momentum behind the rally is strong. This could see even more FOMO buying into Bitcoin, a factor that could push the price to $100k in the short term.
Advertisement
