Key Points
- Bitcoin has surpassed the $100,000 mark for the first time, with its value at $103,197 at the time of writing.
- There are questions about whether the cryptocurrency can sustain demand above this price level or succumb to intense profit-taking.
Bitcoin [BTC] holders are celebrating as the cryptocurrency has finally exceeded the $100,000-level. Currently, BTC is valued at $103,197, displaying a hike of over 7% in just over 48 hours.
The key question now is whether Bitcoin can maintain demand above this critical price level, or will it succumb to heavy profit-taking. This remains to be seen.
Factors Contributing to Bitcoin’s Milestone
Many Bitcoin enthusiasts had predicted that Bitcoin would eventually become a six-figure asset, and that day has finally arrived. This latest achievement is due to robust demand from both the spot and derivatives segments. Bitcoin ETFs, approved earlier this year, have also significantly contributed to this rally through intense accumulation.
Vishal Sacheendran, Head of Regional Markets at Binance, stated, “Bitcoin has hit the historic $100,000 mark, driven by favorable market dynamics, growing U.S. regulatory clarity, and institutional adoption through Bitcoin ETFs… Discussions around a U.S. Strategic Bitcoin Reserve and corporate treasury integration signal a shift toward mainstream adoption.”
Bitcoin’s Market Indicators
At the time of writing, BTC’s moving average was well below the price candles, suggesting bullish momentum. The Chaikin Money Flow’s positive reading indicated similar sentiments. However, the RSI was well above 70, hinting at a possibly overbought market. This could be the first sign of an upcoming price correction.
The question now is whether Bitcoin can maintain stability above $100,000. Profit-taking is expected following BTC’s surge above $100,000. However, at the time of writing, the cryptocurrency’s metrics did not suggest this. Metrics like Bitcoin’s exchange reserves showed a decrease, indicating a lack of selling pressure across the cryptocurrency’s market.
The state of demand in the derivatives segment was also evaluated. The total Bitcoin futures Open Interest on exchanges soared to $64.70 billion. The ratio of Bitcoin longs vs. shorts, according to Coinglass, also suggested that the market was still largely bullish at press time.
