bitcoin has entered a brief consolidation phase after hitting new all-time highs last week, following an aggressive price surge that caught the market's attention. The rally came on the heels of two major developments: former President Donald Trump's victory in the US election and the Federal Reserve's decision to cut interest rates. These developments fueled optimism across markets, pushing btc into uncharted territory.
Key data from CryptoQuant founder Ki Young Ju provides more insight into the underlying drivers of this rally. According to Ju, retail investors are returning to the market in droves, a strong indicator that bitcoin's recent surge is not a short-lived event but the beginning of a more sustained bull run.
Historically, increased retail activity has coincided with phases of explosive growth for btc, adding weight to the narrative of greater upside.
Analysts note that solid demand and favorable macroeconomic conditions support the continued bullish momentum. While the price may face short-term corrections, the influx of retail investors suggests a solid foundation for the next phase of this rally. bitcoin's resilience and growing popularity reinforce its position as a leader in the changing financial landscape.
The bitcoin party has just begun
bitcoin has confirmed a bullish rally after surpassing all-time highs multiple times over the past two weeks. This recent surge has many investors believing that this is just the beginning of a larger upward move, with some predicting that btc could reach the $100,000 mark in the coming weeks.
The rally has been characterized by strong momentum, constantly establishing new price levels and demonstrating resilience despite potential market corrections.
<a target="_blank" href="https://x.com/ki_young_ju/status/1858383043700064299″ target=”_blank” rel=”noopener nofollow”>Data from CryptoQuant CEO Ki Young Ju suggests that retail investors are starting to play a more prominent role in this rally. According to Ju, bitcoin trading volume below $100,000 has reached a three-year high, indicating that retail participation is increasing. Historically, retail investors have been a key driver of bitcoin price increases, and when they enter the market, it often results in massive gains for btc and the broader crypto market.
This surge in retail activity could signal the start of another euphoric phase for btc, similar to what was seen during previous bull markets. As retail investors begin to show interest, demand for btc could increase, driving up the price and fueling the overall bullish market sentiment.
With bitcoin hitting new highs and retail interest surging, the stage is set for a potentially explosive run to $100,000. If the current momentum continues, it could usher in a new phase of growth for btc, providing new opportunities and further solidifying its position as a leading digital asset.
btc tests crucial supply
bitcoin is breaking above $90,000, reaching a price of $91,777 after several days of consolidation just below its all-time high (ATH). This upward move suggests that btc is primed for a continuation, driven by growing demand and an influx of retail investors entering the market.
As the price tests key supply levels near the ATH, it faces crucial support at the $87,000 mark, a significant demand level that could push btc towards the psychological $100,000 level. Maintaining this level is vital to maintain bullish momentum and confirm the bullish outlook.
If btc loses support at $87,000, it risks prolonging the current consolidation phase or even triggering a correction to lower demand levels, which could halt future price advances.
The next few days will be critical as the market assesses btc's ability to hold above this key level. If successful, a break above $95,000 and a push towards $100,000 could materialize, solidifying the uptrend. However, failure to hold support could lead to higher volatility and a deeper pullback, creating uncertainty for investors watching the market closely.
Featured image of Dall-E, TradingView chart
