Key Points
- Bitcoin’s price soared above $100,000, marking a significant milestone in its history.
- A bearish divergence is forming, suggesting potential sell pressure and profit-taking.
Bitcoin [BTC] has achieved a significant milestone, with its price soaring above $100,000 for the first time in history.
The question now is, what’s next for the king of cryptocurrencies?
Bitcoin’s Bullish December
Bitcoin’s December is unfolding well, with its price action pushing as high as $103,620 in the last 24 hours. The price action may offer insights into the next possible move.
Despite hitting higher highs, Bitcoin’s RSI has been forming lower highs. This is resulting in a bearish divergence, suggesting that a wave of sell pressure could commence soon.
No Signs of Bitcoin Bears Yet
There is a significant chance that Bitcoin could stay above the $100,000 price level and possibly extend its upside in the coming days. However, a pullback is inevitable, especially as sell pressure starts building up.
CryptoQuant revealed that exchange flows dipped significantly in the last 24 hours, indicating a momentum slowdown. Higher exchange inflows than outflows could signal a build-up in sell pressure.
Despite this, Bitcoin continued extending its upside. This could be explained by on-chain data showing strong demand from the derivatives segment.
Bitcoin funding rates remained positive, surging to a new 2-week high as a reflection of the strong bullish demand. This confirmed that derivatives demand contributed significantly to BTC’s push above $100,000.
The open interest and positive funding rates also confirmed that there was no noteworthy uptick in sell pressure. This could be an indication that the market remains bullish, with expectations of more upside.
However, it is worth noting that Bitcoin is forming a bearish divergence. Consumer behavior during the holidays may also influence many holders to take some profits off the table.
A large number of Bitcoin holders, especially those that bought at significantly lower prices might be incentivized to take profits. This could possibly trigger a sizable retracement from BTC’s current price level.
