Today, the first cryptocurrency updated its all-time high, reaching around $106,648 per coin. Will the price continue to rise, or is this its peak?
Recently, there was a bit of FUD (fear, uncertainty, and doubt) surrounding the first cryptocurrency. Of course, this didn’t lead to a sharp drop, but it still kept the price below $100,000, as it serves the interests of large players to buy coins under $100,000. As often happens, large players and corporations are interested in this kind of market behavior, hoping to see panic and buy up your bitcoins.
Many investors are selling at a loss, fearing downturns in their portfolios. Some believe this is a double top, and we’ll soon enter a bear market again. But for that, there would need to be a correction of at least 30% from current levels. It’s possible that in today’s reality, it’s becoming more difficult to “dump” BTC, as demand for it is only increasing.
A catalyst for the new ATH was the statement by future U.S. president Donald Trump, who announced that he intends to make the U.S. the leading country in the cryptocurrency space and turn Bitcoin into a strategic reserve currency.
Moreover, many technical indicators suggest that we have either already started or will soon enter the final stage of a crazy bull market.
In Google Trends, we do not see a sharp surge in interest from retail investors, as we have seen in the past. They usually enter the market at the very end, when those who bought during the “bloody” days are selling off.
Looking at previous cycles, Bitcoin usually rose by 270-290% from one ATH to the next. So, if we take the previous cycle, the first cryptocurrency hasn’t even reached 100% growth yet (theoretically, that would be a price of around $130-140k). Therefore, the potential for further growth still remains. We’ve made the most conservative estimates.
Plan-B, with his Stock-to-Flow model, noticed an interesting pattern: according to his forecasts, the bull market should continue at least until mid-2025, if not longer.
We have also not seen Bitcoin’s dominance fall below 45%, and the true and crazy altseason has not even begun yet.
For us, all these indicators suggest that the true cryptocurrency explosion is still ahead. What might happen after January 20 (Donald Trump’s inauguration) is anyone’s guess.
Meanwhile, the market will continue to surprise and shock, alternating between growth and decline, shaking out weak hands and liquidating traders with leverage. And after all this, a new era of cryptocurrencies awaits us.
