- Bitcoin finally shot past $100,000 for the first time in its history
- It is worth evaluating the state of demand vs. sell pressure to establish whether the price will now hold or pull back
Bitcoin [BTC] holders are in celebratory mode after the king coin finally surpassed the $100,000-level. At the time of writing, BTC was valued at$103,197, having hiked by over 7% in just over 48 hours.
Source: BTC/USD, TradingView
The cryptocurrency’s latest performance raises an important question though – Can it sustain demand above this important price level, or will it give into intense profit-taking? Well, only time will tell.
Many Bitcoin evangelists have previously prophesied that Bitcoin would eventually become a six-figure asset, and that day has finally come.
The cryptocurrency owes this latest milestone to a combination of robust demand from both the spot and derivatives segments. Bitcoin ETFs, which were approved earlier this year, have also contributed heavily to this rally through intense accumulation.
According toVishal Sacheendran, Head of Regional Markets at Binance,
“Bitcoin has hit the historic $100,000 mark, driven by favorable market dynamics, growing U.S. regulatory clarity, and institutional adoption through Bitcoin ETFs. The cryptocurrency market is experiencing a surge in optimism as governments and institutions worldwide begin to embrace blockchain technology, paving the way for broader adoption and investment in digital assets. Discussions around a U.S. Strategic Bitcoin Reserve and corporate treasury integration signal a shift toward mainstream adoption.”
What did the cryptocurrency’s indicators suggest though? At press time, BTC’s moving average was well under the price candles and suggested bullish momentum. The positive reading of the Chaikin Money Flow pointed to something similar too.
On the contrary though, the RSI was positioned well above 70 – A sign of a possibly overbought market. This might be the first sign of an incoming price correction.
Can Bitcoin hold steady above $100,000?
Now, profit-taking is bound to take place after BTC’s push above $100,000. At the time of writing though, the cryptocurrency’s metrics were yet to underline the same though.
On the contrary, metrics like Bitcoin’s exchange reserves highlighted the opposite, with this particular metric falling on the charts to allude to a lack of selling pressure across the cryptocurrency’s market.
Source: CryptoQuant
We also assessed the state of demand in the derivatives segment. Consider this – The total Bitcoin futures Open Interest on exchanges soared to $64.70 billion.
Source: Coinglass
Read Bitcoin’s [BTC] Price Prediction 2024-25
Finally, the ratio of Bitcoin longs vs. shorts, according to Coinglass, also suggested that the market was still largely bullish at press time.
