Bitcoin (BTCUSD) is expected to capture significant attention on Wednesday as it approaches the $100,000 milestone. On Tuesday, the cryptocurrency reached a new all-time high of over $94,000 before settling around $92,000 at the start of Asian trading. Since Donald Trump’s election victory, Bitcoin has surged approximately 35%, driven by optimism regarding policies that may favor the cryptocurrency sector under the new administration.
Market sentiment received a boost following reports that Trump Media & Technology Group (DJT) is in talks to acquire digital asset marketplace Bakkt (BKKT). Additionally, options trading has commenced for BlackRock’s (BLK) iShares Bitcoin Trust, providing investors with new avenues for hedging and speculating on Bitcoin’s price movements.
Bitcoin’s recent price surge has accelerated after breaking decisively above the psychological barrier of $70,000 earlier this month. The cryptocurrency has recorded its highest trading volumes since mid-March, indicating robust buying activity from institutional investors and other large market participants.
The relative strength index (RSI) currently stands above 70, suggesting bullish momentum but also indicating overbought conditions that could lead to short-term corrections. Analysts are using technical analysis to identify key price levels to watch as Bitcoin’s rally continues.
To forecast potential price targets, analysts employ a technique known as the measured move principle. By measuring Bitcoin’s upward trend from October 2023 to March 2024 and applying this percentage increase to the lower trendline of its recent trading range, a potential price target of $154,000 emerges when a 180% increase is applied to the $55,000 mark.
Investors should closely monitor key support levels during any pullbacks. The $70,000 level is particularly significant as it represents both a breakout point from earlier this month and aligns with the notable peak from November 2021. Should selling pressure persist, Bitcoin may find support around $55,000, where it could encounter buying interest based on its recent trading range.
As Bitcoin continues its post-election rally, all eyes will be on how it navigates these critical price levels and whether it can maintain its upward momentum toward the coveted $100,000 threshold.
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