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Bitcoin’s price is currently oscillating between $89,000 and $98,000, with traders eagerly awaiting whether it will break to the upside or downside. While some had expected the cryptocurrency to reach $100,000 already, analysts point to a combination of factors behind the current market dynamics.
Bitcoin’s recent price surge follows the breakout from a seven-month downtrend after the U.S. election, particularly with the news of Trump’s potential victory. This, along with a shift in U.S. government stance towards crypto — from an anti-crypto administration to one more pro-crypto under Trump — has created a more bullish environment for Bitcoin.
The Bitcoin Storm And What’s Next
The recent launch of Bitcoin futures options has added additional upward pressure. Market makers are required to buy Bitcoin to hedge their positions, boosting the asset’s price. Adding fuel to the fire is MicroStrategy’s Michael Saylor, who continues to raise billions to purchase more Bitcoin, further driving demand.
With all these factors coming together, Ran Neuner, founder of Crypto Banter, believes Bitcoin’s future looks bright, though a breakout to $100K may still be elusive. However, it’s clear that these developments have created the perfect storm for Bitcoin’s continued rise.
Bitcoin Crash Incoming?
In an interview with David Lin, the analyst warned of a potential “blow-off top” in the near future. Expectations for Bitcoin to hit $100K have been fueled by anticipated U.S. regulatory changes, but experts predict that a sell-off could occur at this key level.
QCP Capital forecasts a 10% rise to $100K in the coming months, followed by a general altcoin season. However, the analyst believes a sharp pullback of 25-30% is normal once Bitcoin hits $100K, as seen in previous cycles.
He expects a correction to occur between now and January, possibly before the inauguration, and is positioning by accumulating cash. He predicts that Bitcoin may drop back to $75K-$80K, with plans to deploy cash into Bitcoin or altcoins once the dip happens.