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BTC Technical Indicators Signal Potential for Extended Rally

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Alexey BondarevDec, 09 2024 11:46
BTC Technical Indicators Signal Potential for Extended Rally

The buzz surrounding Bitcoin's recent surge to $100,000 has sparked vigorous discussions within the crypto community. Speculators and enthusiasts anticipate the largest digital asset to set new all-time highs in the coming weeks.

Bitcoin has demonstrated robust upward momentum, according to IC News, a prominent information source. The cryptocurrency appears primed for another rally from its crucial $100,000 level. This prediction is supported by key technical indicators that suggest an imminent extension beyond the $100,000 threshold. The resurgence at this particular milestone may herald a fresh phase in Bitcoin's bullish trajectory, both in the short and long-term.

Analyzing Fibonacci extensions, IC News forecasts an additional ascent to the $115,000 mark, signaling a 15% rise. "Based on Fibonacci extensions, Bitcoin's immediate target sits at $115,000, reflecting a further 15% increase from the $100,000 landmark," noted the platform.

A more significant hike could be set in motion if the Relative Strength Index (RSI) approaches the critical overbought territory. This situation might propel Bitcoin's price to as high as $124,500, a figure that triples the swing low of $90,500 based on Fibonacci analyses.

Bitcoin recently dipped below the $100,000 mark, yet Negentropic, a seasoned crypto analyst and investor, suggests the market has returned to a prior resistance. According to Negentropic, Bitcoin is currently testing the $98,500 resistance level. The digital asset's fluctuations saw it fall to $91,000 after hitting $100,000, before rebounding to $97,000.

Negentropic emphasizes that the rebound has been largely driven by spot buying. The aim is for Bitcoin to surpass $100,000 again, targeting $104,000 to $105,000 short-term once it breaks the $98,500 resistance.

As Bitcoin strives to maintain its position above $100,000, shifts in investor sentiment are noticeable, leading to speculation about further price hikes. CryptoQuant, an on-chain analytics powerhouse, reported a notable decline in Bitcoin held on exchanges in recent weeks.

The Bitcoin Exchange Netflows metric, which monitors investor activity and BTC movement, indicates significant negative outflows since October.

This trend reflects a preference among major investors for long-term storage over exchange holdings. Such a shift could alleviate selling pressure, creating a supply-demand imbalance that favors Bitcoin.

Disclaimer and Risk Warning: The information provided in this article is for educational and informational purposes only and is based on the author's opinion. It does not constitute financial, investment, legal, or tax advice. Cryptocurrency assets are highly volatile and subject to high risk, including the risk of losing all or a substantial amount of your investment. Trading or holding crypto assets may not be suitable for all investors. The views expressed in this article are solely those of the author(s) and do not represent the official policy or position of Yellow, its founders, or its executives. Always conduct your own thorough research (D.Y.O.R.) and consult a licensed financial professional before making any investment decision.
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