Bitcoin is ‘memetic’ and won’t stay down around $100K for long: Analyst
Bitcoin has hit $100,000 for the first time, but analysts say it won’t stay there long because breaking the psychological price barrier is expected to attract more attention and drive the price even higher.
“I don’t think it’s likely we see too much consolidation around 100k,” Derive founder and crypto analyst Nick Forster told Cointelegraph. After Bitcoin (BTC) reached an all-time high of $73,679 in March, it consolidated within a wide range of $53,000 and $72,000 for the next seven months.
Bitcoin’s $100K price will ‘draw attention’
“BTC is still a memetic asset, and these sorts of psychological barriers tend to draw attention and headlines which draw in new market participants and change opinions of existing participants,” Forster said.
“This creates further volatility and potential upside,” Forster added. Echoing a similar sentiment, crypto trader Matthew Hyland said in a Dec. 5 X post that the $114,000 price level for Bitcoin is “loading.”
Bitcoin was trading at $102,250 at the time of publication. Source: CoinMarketCap
At the time of publication, Bitcoin was trading at $102,250, according to CoinMarketCap data.
Hyland wrote, “This is where it begins for Crypto. You have a 3-5 month window. Take advantage.”
Futures traders seem to share the optimism, with $1.54 billion in long positions at risk of liquidation if Bitcoin falls back below $100,000, according to CoinGlass data.
Bitcoin Open interest (OI) — a metric tracking the total number of unsettled Bitcoin derivative contracts such as options and futures — has jumped 5.14% over the past 24 hours to $61.18 billion.
Analysts anticipate rotation into altcoins to begin
Forster anticipates more rotation into altcoins, particularly Ether (ETH), which he said has “lagged in the market so far.” However, he pointed out that Ether has “historically outperformed” Bitcoin after reaching previous all-time highs or “significant milestones.”
Related: Bitcoin whales ‘took advantage’ of $90K BTC price dip, scooping up $1.5B
Crypto analyst Miles Deutscher said that the higher Bitcoin’s price goes, “the bigger the altcoin run will be.”
“I’m salivating,” Deutscher said.
Meanwhile, Dan Held told his 738,300 X followers that the $100,000 milestone doesn’t “just represent a price,” but a significant adoption moment for Bitcoin.
“It represents that the world is gradually acknowledging Bitcoin as the reserve currency of the future,” Held said.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
