In an unprecedented achievement, Bitcoin (BTC) recently surpassed the $100,000 milestone, marking a significant moment in the cryptocurrency’s history. After this accomplishment, Bitcoin experienced its largest retracement in the past month, only to bounce back with vigor. As the flagship cryptocurrency continues its dynamic performance, analysts have begun to identify key levels to monitor and predict the potential next stages in BTC’s rally.
Bitcoin Rally Promises Continuation Above the $100,000 Threshold
On a remarkable Thursday, Bitcoin reached a new all-time high (ATH) of $103,600, marking an 8% increase in its daily value. This surge allowed Bitcoin, the largest cryptocurrency by market capitalization, to break free from a one-month bullish pennant and cross the $100,000 threshold for the first time in history.
Following this impressive movement, BTC experienced a retracement to $98,000 before briefly dipping to the $90,000 support zone. This 13% correction stands as the most significant decline for Bitcoin since the post-election rally began a month prior, causing liquidations of approximately $1 billion, the largest since August.
Despite this setback, Bitcoin rapidly regained stability within the $97,000-$98,000 range. The cryptocurrency then retested previous ATH levels around $99,000 on Friday morning. Renowned crypto analyst Ali Martinez highlighted the critical support level that appears to underpin Bitcoin’s rally.
Martinez identified the $96,870 mark as a significant support zone for Bitcoin, where over 1.45 million addresses acquired 1.42 million BTC. He stated, “As long as this demand zone holds, there is a good probability that BTC will continue marching higher.” Furthermore, Martinez emphasized that the local Bitcoin top has likely not been reached yet, as these peaks usually occur around the Short-Term Holder Cost Basis plus one standard deviation. According to his analysis, this level was positioned at $112,926 at the time of reporting, suggesting that BTC could see another 13% increase before experiencing a major retracement.
Will Bitcoin Echo Its 2017 Performance?
Crypto analyst Jelle has indicated that Bitcoin continues to “closely follow the Q4 2023 fractal” despite recent dips. He proposed that now, having cleared liquidity on both sides, Bitcoin is poised to push back to the $100,000 milestone.
Jelle postulated that Bitcoin might fluctuate until Christmas, at which point he predicts a “true breakout” if it maintains its current trajectory, akin to last year’s movements. Additionally, he noted that the recent $100,000 candle is reminiscent of Bitcoin’s candle when it first broke the $10,000 mark.
Back in November 2017, Bitcoin surged to $10,000 for the first time, subsequently reaching the $11,000 range before dropping to $8,500. The following day, Bitcoin’s price rebounded from this correction, retesting the $10,000 barrier and eventually establishing it as a support level on the third day.
Following this, Bitcoin experienced a 90% increase over the next few weeks, reaching the 2017 ATH of $19,000. Drawing from this historical pattern, Jelle suggests that recent price volatility is “completely normal” and that Bitcoin will likely ascend further if it mirrors past trends.
Future Projections for Bitcoin’s Price
After its recovery, Bitcoin successfully retested the bullish pennant, setting a strong foundation for a potential six-figure price. Jelle confidently stated that the liftoff could target the $130,000 level, “once and for all.”
As of this writing, the flagship cryptocurrency is trading at $101,050, reflecting a 4.7% increase over the weekly timeframe. Observers continue to monitor Bitcoin’s performance, eagerly anticipating its next moves.
