Highlights:
- Bitcoin price is holding above $100k even as the market stays calm
- A bullish breakout off the current price could see Bitcoin hit new highs
- Institutional FOMO could trigger a rally to $200k or higher
Bitcoin has changed a little today as the price starts to flatline. At the time of going to press, Bitcoin was trading at $100,150.92, down by a negligible 0.40% in the day. The little movement in price is also reflected in its trading volumes. In the last 24 hours, Bitcoin trading volumes have been down by 14.70%, standing at $68.06 billion.
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This is an indicator that the majority of Bitcoin holders are not trading or moving their Bitcoin. They could be expecting another leg up for Bitcoin in the future. Multiple indicators already point to such a scenario playing out. The CoinMarketCap tracker shows that 79% of investors are currently bullish on Bitcoin despite the little change in price intraday.
Technical Analysis – Bitcoin Price Trading at Key Support Level
From the charts, Bitcoin’s price continues to hold steady above the $100k level for another consecutive day. This is despite a lack of strong bullish sentiment across the market at the moment. It shows the underlying bullish sentiment across the market. If bulls take control and push Bitcoin off the $100k support, the level to watch would be its recent high of $103,672. A rally through this resistance could open the way for a Bitcoin rally to prices as high as $200k in the short term.
On the flipside, if Bitcoin drops, and closes below the $100k support, then a correction could follow. In such a scenario, Bitcoin could drop to around $94,350, a key support level in the day.
Of these scenarios, the odds are higher that Bitcoin could be headed higher in the short term. Multiple factors support a bullish breakout for Bitcoin in the short term. One of them is the fact that institutional money could soon flood into Bitcoin.
BlackRock Hints at the Best Bitcoin Allocation for Corporations
There is a lot of institutional interest in Bitcoin after MicroStrategy showed that it can be a strategy to value growth. Multiple listed corporations are now considering adding Bitcoin to their balance sheets. BlackRock, one of the largest institutional investors in the world and a big investor in Bitcoin, has hinted at the best way for companies to go about this allocation.
According to BlackRock, a 1 – 2% allocation could offer investors a reasonable exposure to Bitcoin without putting themselves at risk of too much crypto market volatility. Given the heavy influence BlackRock has on Wall Street, this could trigger a rush to allocate to Bitcoin. It could trigger a rally that could push Bitcoin price to new highs due to its finite nature.
🇺🇸 $10 TRILLION BlackRock just suggested allocating 2% of the portfolio in #Bitcoin 🤯
THIS IS MASSIVE! 🚀 pic.twitter.com/aAbhYKUVOp
— Vivek⚡️ (@Vivek4real_) December 12, 2024
Individual US States Pushing Forward with Bitcoin Reserves
The idea of creating a Bitcoin reserve in the US is gaining traction now that a pro-crypto administration is coming to the US. However, individual States are already fast-tracking the process of creating Bitcoin reserves for themselves.
The latest news around Bitcoin is a Texas representative has made a formal presentation of a bill on the formation of a Bitcoin reserve. This could trigger an avalanche of other Bitcoin reserves across the States which could significantly add to the bullish momentum around Bitcoin. That’s due to the legitimacy these moves are giving Bitcoin in the eyes of investors and the finite nature of Bitcoin.
🇺🇸 STRATEGIC #BITCOIN RESERVE IS NOW OFFICIALLY HAPPENING IN TEXAS.
WHAT A TIME TO BE ALIVE 🤯 pic.twitter.com/Lub2sRyVzD
— Vivek⚡️ (@Vivek4real_) December 12, 2024
A Recap on Bitcoin Price
Overall, Bitcoin may be quiet today, but this could be the calm before the storm. There are multiple factors that support a bullish breakout. Key among them is the growing FOMO by institutions, and the high possibility of Bitcoin reserves becoming a reality across the US.
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