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bitcoin (btc), the largest cryptocurrency by market capitalization, has seen a notable bullish trend over the past three weeks, inching closer to the elusive $100,000 mark.
This continues Donald Trump's victory in the presidential election over Democratic Party candidate Kamala Harris, boosting investor confidence in a new era for the industry as a whole.
This has led to increased adoption of the leading crypto, and major corporations around the world have adopted it as <a target="_blank" href="https://bitcoinist.com/9-companies-that-adopted-strategic-bitcoin-reserves/” target=”_blank” rel=”nofollow”>strategic reserve asset. Additionally, exchange-traded fund (ETF) inflows have increased, further contributing to the bull run.
However, after its recent 7% correction, bitcoin price fell to around $91,000. It then regained the $96,000 mark, raising doubts about its ability to overcome the psychological barrier. $100,000 barrier before the end of the year.
Critical support at $92,700
The price peak of $99,540 reached last week has left investors wondering if bitcoin will be able to maintain its momentum or selling pressure will lead to further consolidation.
Despite the uncertainty, Glassnode founders Yann Allemann and Jan Happel have provided insight into bitcoin's potential trajectory as December approaches. They acknowledge the challenges ahead but maintain that the $100,000 goal remains feasible.
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in a <a target="_blank" href="https://x.com/Negentropic_/status/1862561349252902950″ target=”_blank” rel=”nofollow”>social media post On x (formerly twitter), Allemann and Happel outlined critical levels to watch in bitcoin price action.
They noted that while bitcoin is currently in a bullish channel, the $97,200 resistance has yet to be broken. If this resistance holds firm, a retest of the $92,700 support level, aligned with the Daily 20, will be made. simple moving average (SMA)—it is likely.
The two founders consider this support zone to be crucial to maintaining the bullish channel and keeping the $100,000 target within reach.
bitcoin could rise to between $125,000 and $140,000 by the end of the year
Adding to the bullish sentiment, cryptanalyst Ali Martínez <a target="_blank" href="https://x.com/ali_charts/status/1862828079816507771″ target=”_blank” rel=”nofollow”>highlighted Historical trends indicating that bitcoin has typically risen in December following the US presidential election.
Over the past two cycles, bitcoin posted gains of 30% and 46%, leading Martinez to speculate that if history repeats itself, bitcoin could close the year in the $125,000 to $140,000 range.
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Martinez more <a target="_blank" href="https://x.com/ali_charts/status/1862610738776612882″ target=”_blank” rel=”nofollow”>pointed out that long-term bitcoin holders have been making profits as the price rose from $62,000 to $99,000. However, he emphasized that this profit-taking behavior is typical during bull markets and should not be interpreted as a signal to short the asset.
The analyst claims that based on historical patterns, long-term holders often take profits as prices rise, which can create short term volatility but it does not necessarily indicate a change in the general market trend.
At the time of writing, btc is trading at $96,500, down a slight 0.3% in the 24-hour period and almost 2% over the past week.
Featured image of DALL-E, chart from TradingView.com
