Bitcoin reached a new all-time high, hitting $97,900 a few hours ago, as market sentiment remains very bullish. This explosive rise has investors wondering how long this upward trend can continue and what lies ahead for the market leader. Bitcoin’s recent performance has drawn comparisons to its historic 2020 rally, sparking excitement among traders and analysts alike.
CryptoQuant Founder and CEO, Ki Young Ju, shared key insights into the driving forces behind the rise. According to Joe, current market conditions reflect the early stages of Bitcoin’s previous bull cycle.
His analysis highlights important data points, such as long-term shareholder behavior and growing demand from institutional investors, that are fueling this rally. Joe also outlines the key factors needed to maintain this momentum and push BTC to higher price levels.
As Bitcoin enters price discovery once again, speculation abounds as to whether this rally will exceed expectations or meet resistance near the psychological level of $100,000. While the market is going through this euphoric phase, all eyes are on Bitcoin’s ability to maintain its upward trajectory. Joe’s analysis provides valuable insights into understanding the factors driving this trend and what could shape the coming months for Bitcoin.
Bitcoin on-chain metrics support bullish sentiment
Bitcoin’s rise has been nothing short of impressive, and investors remain optimistic about the months ahead, buoyed by on-chain metrics confirming that this is just the beginning of a larger uptrend.
CryptoQuant CEO, Ki Young Ju, recently shared a comprehensive analysis about Xexplaining the main drivers behind Bitcoin’s rise. Joe stated that current market conditions resemble the early stages of the 2020 bull market, a period that ultimately pushed BTC to all-time highs.
For months, Joe has been discussing the build-up of whales on the series, a trend that many critics dismissed as overdone. However, the data proved accurate, and the reasons for the accumulation became clearer.
According to Gu, the sharp increase in mining costs after the recent halving has created pressure on miners, forcing the price to rise to maintain profitability. This situation has led to a wave of short positions, contributing to a short squeeze that is helping to fuel the current Bitcoin bull market.
Joe also points out that BTC’s last halving cycle saw the Q4 bull market kick off, and he believes that whales are unlikely to let Q4 of this year pass without a major move. Heading into Q4, market sentiment remains positive, and Bitcoin appears poised to continue its upward trajectory, with many anticipating new highs in the coming months.
BTC reaches ATH almost every day
Bitcoin has reached its all-time high ten times in the past sixteen days, showing incredibly bullish price action which is rare for any asset. The price is now approaching the psychological level of $100,000, a level that many investors expect Bitcoin to break in the coming days.
This strong upward momentum indicates high market confidence, but there is also a risk of a correction. While demand remains high, it is offset by whales taking profits at key price levels, which can lead to short-term volatility.
For BTC to continue its rise towards $100,000, it must remain above the $93,400 mark in the coming days. If this level holds as support, a rise towards $100,000 could appear imminent, which could spark more bullish sentiment and push Bitcoin to new heights.
However, a correction to lower demand levels may occur if Bitcoin fails to break through the $100,000 level and the price falls below the $93,400 support level. In such a situation, Bitcoin could fall to levels around $88,500 or even lower as the market adjusts and whales continue to take profits. The next few days will be crucial to determine the direction of Bitcoin.
Featured image by Dall-E, chart from TradingView
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