- Summary:
- Bitcoin price came within $500 of the milestone six figure mark. We discuss what this means and whether it could trigger a selloff.
Bitcoin price is on course to hit the milestone $100k mark on Friday, generating excitement across and beyond the crypto industry. BTC had reached a high of $99,500 on the daily chart at the time of writing, setting a new all-time high and signaling a near-certainty of hitting the six-figure price mark.
A case for BTC price to stay above $100k
The crypto market has long speculated about BTC’s $100k price milestone, and now many investors can’t help but wonder, “What next?”. As much as Bitcoin has well-established use cases, there’s genuine concern that the thrill could die off once it hits that milestone. Like other cryptocurrencies, Bitcoin price depends on market sentiment significantly. Therefore, volatility is likely to spike as BTC approaches $100k.
However, the current Trump-fueled rally substantially reduces the risk of a selloff. The President-elect is reported to be setting up a team to develop a Federal policy for cryptocurrencies. With that, speculation is rife that BTC could get new Federal Government use cases, including being part of a strategic reserve.
Such a move would beat any institutional adoption seen so far, and would ultimately mainstream Bitcoin in the financial sector. Therefore, this scenario raises the probability that the $100k mark could ultimately turn out to be the support mark and not the price ceiling.
Furthermore, Bitcoin has proven its worth as a hedge against inflation, and has outperformed gold, with year-to-date returns of 134 percent against 30 percent. In addition, BTC has gained 1,250 percent in the last five years, dwarfing gold’s 84 percent.
Bitcoin price prediction
Bitcoin price pivots at 98,515; action above this level favors further gains. Otherwise, the trend will head downward. The RSI momentum indicator currently calls for further upside. That will likely see BTC move to the first resistance at 99,068. However, extended control by the buyers will break above that level and test 99,513.
On the downside, the price is likely to find the first support at 98,140. However, if the momentum strengthens, BTCUSD could break below that level, invalidating the upside narrative. Meanwhile, the decline could extend to test the second support at 97,685.
