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Why is Bitcoin up today? ‘There must be some demand…’

2min Read

Here’s what analysts believe awaits BTC after crossing the $100K milestone.

Why is Bitcoin up today? 'There must be some demand...'
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  • BTC crossed the $100K and hit an ATH of $104K. 
  • Analysts predicted BTC could soar beyond $110K, but a pullback to $85K was also likely.   

On the 5th of December, in the early Asia session, Bitcoin [BTC] crossed the $100K milestone, likely driven by a recent comment by Fed chair Jerome Powell.

In an interview with the New York Times, Powell said that BTC is a competitor to gold and not the U.S. dollar. He stated

“People use Bitcoin as a speculative asset; it’s like gold, but virtual. It’s not a competitor to the dollar but to gold.” 

A few hours after Powell’s comment, BTC surged from $97K to a new all-time high of $104K, bringing its gains to over 50% since the November U.S. elections. 

Why is Bitcoin up

Source: BTC/USDT, TradingView

What’s next for BTC?

Commenting on the same, SwissBlock, a crypto research firm, acknowledged that Powell’s impact was a surprise but a great welcome for the digital asset. The firm stated

“It’s a Happy $100K! Definitely, Fed Chairman Jerome Powell pumping Bitcoin wasn’t on our bingo card. Our next short-term target? $105K.” 

On his part, Arthur Azizov, CEO of B2BINPAY, an all-in-one crypto ecosystem for business, told AMBCrypto that the pump was linked to Trump’s nomination of pro-crypto Paul Atkins as SEC chair. 

Azizov added that BTC may consolidate at $100K before a pullback to $85K. 

“I believe Bitcoin’s price will consolidate around $100,000 before retracing to five-digit levels, potentially settling near $85,000 in the following months.” 

Crypto research firm Presto Research also cautioned that the rally could attract profit-taking.

However, the research firm also noted that the $100K could attract more demand from institutional investors. 

“We believe there is more room for a rally, as there must be some demand waiting for BTC to break 100k, which will capture more public attention.” 

Now, what are BTC’s next key levels?

CryptoQuant’s Ki Young Ju projected that, based on the realized cap price band, BTC could eye $146K as a cycle top and $112K as the end-year target. 

Why is Bitcoin up

Source: CryptoQuant

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Benjamin Njiri is a Crypto Analyst and Journalist at AMBCrypto who specializes in technical analysis and identifying emergent market trends. He excels at breaking down complex chart patterns and on-chain data to make them accessible and actionable for investors. His rigorous analytical approach is founded on his academic background as a Telecommunication Engineering graduate. This discipline has equipped him with an expert understanding of signal processing and data analysis, allowing him to systematically filter market noise from true trend signals with engineering precision. Armed with this unique perspective, Benjamin focuses on providing clear, data-driven insights into the digital asset landscape. His work is dedicated to demystifying the intricate world of cryptocurrencies, empowering readers to understand the forces that shape the market and to navigate it with greater confidence.
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