- Bitcoin is nearing the critical $100,000 mark amid strong ETF inflows and rising retail interest, but analysts warn that significant resistance and profit-taking around this level could trigger a short-term pullback.
- Historical trends show that while large ETF investments often precede price surges, they don’t guarantee sustained highs, with some experts suggesting Bitcoin may need to cool off before making a decisive breakout
Bitcoin’s recent strong performance has seen its price rise significantly, recovering from lower levels. This increase is happening alongside large amounts of money flowing into investment funds that track Bitcoin. However, experts are considering whether these big investments always lead to a short-term peak in Bitcoin’s price.
What History and Data Show
Looking back at how Bitcoin has behaved before can help us understand what might happen now. Sometimes, large investments in these Bitcoin funds have happened just before Bitcoin’s price reached a temporary high point and then went down. For example, in March 2024, huge inflows preceded a new all-time high, which was followed by a price drop. A similar pattern was seen in June 2024.
However, this isn’t always the case. In November 2024, even with very high inflows, Bitcoin’s price continued to rise, breaking the $100,000 mark and setting new records. This shows that while large ETF inflows can be a sign, they don’t mean the price will immediately fall.
According to market analysis, money flowing into Bitcoin funds seems to be more of a short-term indicator of price increases rather than a sign of a price reversal. Bitcoin’s recent rally has helped it move above important price levels, showing strong momentum.
Currently, BTC is finding it difficult to move past the $95,000 level, which is acting as a resistance point. It’s currently trading at $94,720, up 0.8% in the last 24 hours. Analysts believe that breaking through this level is key for Bitcoin to continue its climb towards $100,000. Factors like continued demand for Bitcoin ETFs and other positive market news will be important for overcoming this resistance.
There is significant interest from sellers in the $97,000 to $100,000 price range, suggesting that once Bitcoin reaches these levels, there might be a pullback in price as people sell to take profits. Some experts are cautious about whether Bitcoin can stay above $95,000 for long and feel there isn’t a strong immediate reason for it to jump to $100,000 just yet.
Despite these potential challenges, the recent price surge has made smaller investors more interested. Data shows that there’s an increase in fear of missing out (FOMO), which can sometimes happen near a temporary high in the market.
Following Bitcoin’s surge above $94.2K Wednesday, Santimentfeed data showed that FOMO began pouring in from retail traders. This crowd reaction typically leads to tops. $100K could very likely arrive in the near future, but it typically won’t happen til the emojis calm,
reported the account.
While Bitcoin could reach $100,000 soon, this often happens after the initial excitement in the market calms down.
Some prominent figures remain very positive about Bitcoin’s future, predicting a significant price increase that could push it well beyond $100,000. They believe that despite current pressures, a major breakout in price is likely.
Prince Filip of Serbia says Bitcoin is being suppressed and that one day the price will ‘run away’ and we could get a ‘Samson Mow’s Omega Candle,’Â
stated the account Simply BTC. Â
Interestingly, a large percentage of the total Bitcoin available is currently held at a profit. This indicates that people have been buying Bitcoin during recent price dips. Historically, when a very high percentage of BTC is held at a profit, it can lead to a phase of strong optimism in the market. With growing positive feelings and technical signs aligning, BTC appears to be in a good position to potentially make a move towards $100,000.