- Bitcoin finally shot above $100,000 for the first time in its history
- It’s worth evaluating the state of demand versus selling pressure to determine whether the price will hold or fall
Bitcoin [BTC] holders are in celebration mode after the king coin finally breached the $100,000 level. At the time of writing, BTC was valued at $103,197, having risen over 7% in just over 48 hours.
Source: BTC/USD, TradingView
However, the cryptocurrency’s latest performance raises an important question: can it sustain demand above this key price level, or will it indulge in intense profit-taking? Well, only time will tell.
Many Bitcoin evangelists previously predicted that Bitcoin would eventually reach a six-figure value, and that day has finally arrived.
The cryptocurrency owes this latest milestone to a combination of robust demand from both the spot and derivatives segments. Bitcoin ETFs, which were approved earlier this year, have also been a major contributor to this rally through intense accumulation.
According to Vishal Sacheendran, head of regional markets at Binance,
“Bitcoin has reached the historic $100,000 mark, driven by favorable market dynamics, growing US regulatory clarity and institutional adoption through Bitcoin ETFs. The cryptocurrency market is experiencing a wave of optimism as governments and institutions around the world begin to embrace blockchain technology, paving the way for wider adoption and investment in digital assets. Discussions around a US strategic Bitcoin reserve and the integration of corporate bonds indicate a shift towards mainstream adoption.”
What did the cryptocurrency indicators suggest? At the time of writing, BTC’s moving average was well below the price candles and suggested bullish momentum. The positive reading of the Chaikin Money Flow also indicated something similar.
On the contrary, the RSI was well above 70 – a sign of a potentially overbought market. This could be the first sign of a coming price correction.
Can Bitcoin Hold Stable Above $100,000?
Now, there will undoubtedly be profit taking after BTC goes above $100,000. However, at the time of writing, cryptocurrency statistics were yet to underline the same.
On the contrary, metrics such as Bitcoin’s foreign exchange reserves highlighted the opposite, with this particular metric falling off the charts to allude to a lack of selling pressure in the cryptocurrency market.
Source: CryptoQuant
We also assessed the state of demand in the derivatives segment. Think about this: Total open interest on Bitcoin futures on exchanges rose to $64.70 billion.
Source: Coinglass
Read Bitcoin’s [BTC] Price forecast 2024-25
Finally, according to Coinglass, the ratio of Bitcoin longs to shorts also suggested that the market was still largely bullish at the time of writing.