Bitcoin has made history by crossing the $100,000 mark, showcasing a 7% increase in the last three days and a 4% surge today. The price of BTC peaked at $104,630 before retracing back to $101,132, sparking hope within the crypto community that the bull cycle is far from over.
The $100k milestone has long been a psychological resistance level for Bitcoin, which it successfully surpassed this morning. The influx of new buyers has played a crucial role in supporting and driving up the price, with significant trading volume contributing to the upward movement.
The Fear and Greed index, standing at 84 this morning, indicates a favorable market sentiment towards buying. However, it is essential for Bitcoin to solidify its support as there are no moving averages in place to provide assistance in this price range.
As the RSI currently sits at 76.41, signaling a bullish trend, it is approaching the overbought zone and will likely need to undergo a cooling-off period. Additionally, the ADX, currently at 17.57, is on the rise despite being relatively low. Bitcoin has experienced a surge in trading volume, with a 35% increase in the last 24 hours, primarily driven by recent activity.
With Bitcoin’s trading volume reaching nearly $100 billion and the total crypto market capitalization rising to $3.69 trillion with a 4.97% increase, Bitcoin’s dominance over the market stands at 55.5%, a relatively lower figure.
Various factors are contributing to Bitcoin’s current momentum, with experts attributing much of the influence to pro-crypto President Donald Trump. Since the US election, the crypto market has seen significant growth, with both Bitcoin and altcoins experiencing substantial price gains. Trump’s efforts to incorporate pro-crypto individuals into his administration have instilled confidence within the community towards cryptocurrencies.
The question on everyone’s mind is whether Bitcoin will crash after surpassing $100k. While expectations are high for Bitcoin to reach $120k soon, the rising RSI suggests a potential cooldown period. The market may capitalize on the current situation, but caution is advised as investors exhibit heightened confidence and greed.
In the past hour alone, over $130 million worth of funds were liquidated, primarily from short positions. Market corrections are likely as it retraces to test support levels, potentially leading to panic-induced price drops. Additionally, there may be a surge in inflows into Bitcoin ETFs, but investors should approach with caution amidst market volatility.