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Cryptocurrency

Bitcoin's $98,000 Surge Leads to Parabolic Phase

2024-12-01

Bitcoin, the dominant cryptocurrency in the market, has been on an extraordinary journey. It has continuously tested resistance levels above $95,000, with the aim of reaching and surpassing the highly anticipated $100,000 all-time high. After surging to $98,000, a renowned crypto analyst has firmly stated that the BTC price has now officially entered the parabolic phase of this four-year market cycle.

Bitcoin's Parabolic Upside Phase

Popular crypto analyst Rekt Capital, with a substantial following of 517,800 on X (formerly Twitter), has declared that Bitcoin has made a definitive and complete transition into its "Parabolic Upside phase" during this bull cycle. He shared a detailed chart illustrating the coin's price action during the 2021 bull run and the current bull cycle.After the halving event in 2022, Bitcoin witnessed a massive rally that propelled it to its 2021 all-time high of over $64,000. At that time, it experienced a significant correction before fully entering its bullish upside phase. Interestingly, a similar trend is visible in this current bull cycle, hinting at the possibility of more substantial price rallies. In the past few months, the BTC price entered a re-accumulation phase characterized by slight declines and consolidation, followed by a subsequent rally above $99,000.Rekt Capital disclosed that once BTC hit $98,000, the pioneer cryptocurrency successfully entered its parabolic upside phase. This phase indicates that Bitcoin has the potential to rise even higher, aligning with analysts' expectations in this bull market.On November 27, Rekt Capital shared a post highlighting the crypto asset's steady progression into the parabolic phase. He pointed out that the cryptocurrency was on the verge of exiting the reaccumulation phase and transitioning into the parabolic upside, as indicated by the green zone on the price chart.

Bitcoin Price: $100,000 ATH – Now Or Never

The crypto community is currently on an intense bullish ride, with analysts and investors eagerly anticipating the Bitcoin price surge to $100,000. The leading cryptocurrency has been trading just below the $100,000 mark, experiencing a price increase above $98,000 at certain points in the past week.A crypto analyst identified as Trader of Crypto on X is capitalizing on this strong bullish trend and announcing that "the clock is ticking" for Bitcoin to reach $100,000. His statement emphasizes how close Bitcoin is to achieving this milestone during this cycle.Trader of Crypto also stated that it is only a matter of time before Bitcoin breaks past the anticipated $100,000 all-time high. While maintaining a bullish outlook on Bitcoin, he presented a price chart suggesting that the cryptocurrency could experience a potential crash towards $46,757 if bears take control.As of now, the Bitcoin price is trading at $96,965, showing a 1% increase in the past 24 hours, according to CoinMarketCap.Featured image from Pexels, chart from TradingView.

Bitcoin, a digital currency that has taken the world by storm, has been on a correction path for the majority of the just concluded week. Despite this, current market trends suggest that it is on the verge of breaking through the highly anticipated $100,000 psychological threshold. Let's delve into the historical trends and current market indicators that point to a potential spectacular rally.

Historical Post-Election December Rallies: A Bullish Trend

Bitcoin has a remarkable history of surging in December following US presidential elections. In 2016, it posted a gain of 30.8%, and in 2020, it saw a gain of 46.92%. This time around, the ecosystem surrounding Bitcoin is in a much better position. There are now Spot Bitcoin ETFs that allow institutional investors to invest in the cryptocurrency, something that was absent in the past two elections. These institutional inflows have been effective in buying up more Bitcoins, especially during profit-taking periods.November has been a great month for Bitcoin, with it ending 38% above where it started. Now, the focus is on December to see how well it performs. As of now, Bitcoin is trading at $97,266.

Chart Analysis: TradingView

The Fear & Greed Index indicates extreme greed in the market sentiment. Crypto analyst Ali Martinez on X has noted that this level of optimism among investors is similar to the dramatic Bitcoin price rally during the last bull run, when it surged from $15,000 to $57,000 in a few weeks. If the historical trend holds, a 30% or 46% gain in December could see Bitcoin reaching $125,000 or $140,000 before the year ends.

On-Chain Data Indicates A Massive Bitcoin Supply Crunch

On-chain data reveals that over 55,000 Bitcoins, worth approximately $5.34 billion, have been withdrawn from exchanges in the past 72 hours. Such significant outflows often suggest a supply crunch as investors move their holdings to private wallets, indicating a long-term bullish outlook.Currently, the Bitcoin price is trading at $96,454, with a range of $95,833 to $97,201 in the past 24 hours. Given its historical December performance, strong market sentiment, and tightening supply, Bitcoin seems well-positioned to aim for the $125,000 - $140,000 range by the end of the year. However, the first resistance to break is $100,000. Breaking above this level is likely to trigger FOMO among investors. On the other hand, the Bitcoin price needs to hold above $90,000 to avoid invalidating most bullish theses. Fortunately, the average mining cost is $90,524, and Bitcoin has never fallen below this during bull runs.Featured image from Pexels, chart from TradingView.

Tom Lee, a renowned financial analyst, has made a significant prediction about Bitcoin's future. His insights suggest that the BTC/USD price could witness a remarkable surge to $250,000 within the upcoming year. This prediction is driven by potential factors such as the possible legitimization of Bitcoin in the U.S. and the increasing adoption of the cryptocurrency.

Unlock the Potential: Bitcoin's Journey to $250,000

Potential Legitimization and Its Impact

During a discussion with Anthony Scaramucci, Fundstat's Lee expressed his optimistic view on Bitcoin's price. He emphasized that if the U.S. government were to recognize Bitcoin as a strategic reserve asset, it would have a profound impact on the cryptocurrency's long-term price prospects. This potential legitimization could attract more institutional investors and lead to a significant increase in Bitcoin's value. As Lee stated, "Over the next 12 months, I believe something in the range of $250,000 is possible — perhaps even highly probable, based on the current price cycle."Moreover, the idea of the government purchasing a million Bitcoins and becoming the largest Bitcoin holder globally further reinforces Bitcoin's standing in the worldwide economy. This move would send a strong signal to the market and potentially attract more investors.

The Role of MicroStrategy in Bitcoin Adoption

Lee also highlighted the contribution of MicroStrategy in advancing Bitcoin adoption. He pointed out that MicroStrategy has shown that using Bitcoin as a balance sheet asset can create tremendous value for its shareholders. This example has inspired other companies to consider incorporating Bitcoin into their investment strategies.The success of MicroStrategy in Bitcoin adoption demonstrates the increasing acceptance of cryptocurrencies in the corporate world. As more companies follow suit, it could lead to a broader adoption of Bitcoin and drive its price higher.

Bitcoin as a Hedge Against Inflation

In today's economic climate, where inflation is a concern, Bitcoin is emerging as a potential hedge. Its decentralized nature and limited supply make it an attractive option for investors looking to protect their wealth.Lee's prediction comes at a time when Bitcoin is gaining traction as a viable alternative to traditional financial systems. As more people recognize the potential of Bitcoin, its demand is likely to increase, driving the price upwards.These factors combined could potentially drive Bitcoin's price to the predicted $250,000 mark within the next year. However, it's important to note that the cryptocurrency market is highly volatile and subject to various risks. Investors should approach Bitcoin with caution and conduct thorough research before making any investment decisions.