Key Points
- Bitcoin price encounters resistance around $100,000 due to retail investors’ profit-taking.
- Crypto analysts remain optimistic about Bitcoin’s future, predicting potential price increases.
Bitcoin, the largest cryptocurrency, has faced stiff resistance around the $100,000 mark. This is attributed to retail investors cashing out their profits.
On December 11, Bitcoin was traded at $98,900, which is less than its record high of approximately $104,000.
Bitcoin’s Future Potential
Many crypto experts believe that Bitcoin still has room for growth. They cite the increasing demand for the cryptocurrency and the decreasing supply as key factors for its potential rise.
The Wall Street Journal recently highlighted that Bitcoin’s limited supply is one of the main reasons for its continued value increase.
Bitcoin’s total supply is limited to 21 million coins. Over 19.7 million coins have already been mined, leaving only about 1.3 million coins to be created. Additionally, millions of coins have been lost and are unlikely to be recovered.
Large amounts of Bitcoin are held by entities like MicroStrategy and Marathon Digital, who are unwilling to sell. The number of Bitcoin on exchanges has also been decreasing, now standing at approximately 2.24 million, down from 2.7 million in January.
Bitcoin’s mining difficulty has increased since the last halving event, further limiting the supply.
Rising Demand for Bitcoin
Bitcoin’s demand continues to grow, as indicated by the continuous inflows into the exchange-traded funds (ETFs) industry. ETF inflows have surpassed the significant level of $34 billion, which is higher than most analysts’ expectations. These funds now hold assets worth over $107 billion.
Crypto analysts like Ali Martinez predict that Bitcoin could eventually rise to $275,000, implying a 177% increase from current levels.
Analysts at Bitwise also share a positive outlook, predicting that Bitcoin could reach $200,000 by 2025 as ETFs attract more inflows. They also suggest that Bitcoin might surpass gold’s $18 trillion market cap by 2029.
The weekly chart indicates a strong bullish breakout for Bitcoin in recent weeks, crossing the crucial resistance level at $69,210. Bitcoin’s price has remained above the 50-week and 200-week Exponential Moving Averages, indicating a positive trend. The Average Directional Index also points upwards, suggesting that the price of Bitcoin will likely continue to rise, with bulls targeting the key resistance level at $122,258.
