2 days ago
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Bitcoin ($BTC) is climbing to its destiny, with the major price level of $100,000 now in touching distance. When will this magical level be reached? Will Bitcoin continue its upward climb?
An unstoppable trajectory
Bitcoin’s upward trajectory looks to be unstoppable. The heavy buying continues, forcing the king of the cryptocurrencies to ever-higher levels. $100,000 is just ahead, and who knows how much higher the price might go if this level is broken and $BTC is able to hold above.
Heavy ETF buying continues
More than 20,000 BTC have been purchased by the U.S. Spot Bitcoin ETFs in the last three days alone. This is equal to more than 44 times the daily issuance of 450 BTC. And this is very likely just the beginning.
Beware of potential bull trap
Of course, a major psychological level such as $100,000 would normally be a great place for the bears to set an ambush. Many investors and traders, especially from retail, would be licking their lips and placing longs just past this level, much of this potentially with leverage.
On the other side of the trade, large market players would be looking at a possible setup that would then smash the price back down, potentially causing a panic sell-off from all those newly long traders. Rinse and repeat.
Trading is for professionals
This is the market, and those new to this game will need to learn fast, or be chewed up and spat out. Bitcoin was meant to be a liferaft for those who were being ground down by the traditional monetary system, and not a way for them to lose their wealth in quick market plunges.
Be that as it may, this is the reality, and if you are trading, you need to have your wits about you, and have an edge over the market majority, which most just will not have.
It can be strongly argued that Bitcoin is an asset to be held for a long period of time. Those who have held for a few years will be up on the deal. Going into the future, they can potentially protect themselves and their families from the ravages of inflation and currency debasement.
$BTC breaks through ascending triangle
Source: TradingView
The 4-hour time frame for $BTC shows that the price has broken out of the top of the ascending triangle as expected. The breakout has been confirmed, and the price is now only a couple of thousand dollars away from that special round figure of $100,000. The only real unknown is whether that price will be hit today, tomorrow, at the weekend, or beyond.
If the price is rejected at $100,000, or perhaps a little beyond, the main two levels of support are at the top of the ascending triangle ($93,300) or at the ascending trendline that stretches from the last bull market tops ($90,000).
Fibonacci extension level targets
Source: TradingView
Zooming right out into the weekly chart, it can be seen that the first fibonacci extension level of 1.618 is only just ahead at $102,000. As mentioned earlier, this would be an ideal level for the bears to lay an ambush.
Even if the $BTC price is rejected from here, there is still the likelihood that once a retrace has taken place, the price can bounce and surge up through this level and head higher again. The chart above displays the 2.618 Fibonacci extension level at $155,000, and the 3.618 Fibonacci extension at $209,000. These are both potential and inspirational targets for the rest of this bull market.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
