Bitcoin’s recent bullish momentum, fueled by the so-called “Trump trade,” has slowed as the cryptocurrency struggles to surpass a crucial $98,000 resistance level. Analysts suggest Bitcoin could hit $110,000 if it clears this barrier, but until then, upside potential remains limited.
Bitcoin Faces Resistance at $98,000
After four failed attempts to breach the $96,000 mark, Bitcoin’s price retraced to $94,812 as of December 3. Crypto analyst Michaël van de Poppe emphasized the importance of the $98,000 level in a recent X post, stating that Bitcoin is “patiently waiting” to cross this threshold to unlock the “magic wonderland” of $100,000 and beyond.
Van de Poppe added that even if Bitcoin dips below current levels, his target zones for the next rally remain unchanged.
Six-Figure Bitcoin Predictions
Many crypto analysts believe six-figure Bitcoin valuations are inevitable, with $98,000 acting as the final hurdle. Pseudonymous analyst DonAlt predicts that if Bitcoin closes above $98,000, it could swiftly climb to $110,000. However, a drop below $90,000 could trigger a temporary correction toward $80,000.
Meanwhile, Bitcoin’s correlation with the Global Macro Investor’s (GMI) Total Liquidity Index suggests a potential rally in early 2025. This index aggregates central bank balance sheets and predicts Bitcoin could hit $110,000 by January 2025.
Short-Term Holders Show Bullish Behavior
Another bullish indicator for Bitcoin comes from short-term holders (STHs), who have stopped selling, signaling reduced profit-taking pressure. According to Sina G, co-founder of 21st Capital, STH profit-taking was a key factor in Bitcoin’s failure to breach $100,000 in November, as evidenced by a spike in the Spent Output Profit Ratio (SOPR).
“We were rejected hard from $100K because STHs took profits, as evidenced in the SOPR spike. But they have stopped taking profits,” Sina G explained.
While Bitcoin faces short-term resistance, long-term prospects remain optimistic. Analysts project that Bitcoin could absorb a portion of the $2 trillion in investments expected by 2025, driven by the US Federal Reserve’s expanding liquidity measures. This influx of capital, along with reduced selling pressure, sets the stage for a potential rally beyond $100,000.
