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- Bitcoin price returned to the psychological $95k mark on Tuesday, raising hopes that it could touch $100k. But what are the odds?
Bitcoin price surged on Tuesday, gaining 4.4 percent to leap from below $92,000 to above the psychological support mark of $95,000. That has got investors believing that the coin could build a stronger momentum in this cycle to break through the psychological $100,000 mark. We asses the odds of such a move below.
What prevented Bitcoin price from hitting $100K last time?
BTC price embarked on a hot streak following Donald Trump’s election victory, and culminated in a record high of $99,500 on November 22. However, it then dropped sharply, going to the cusp of breaking below the $90k mark.
The good news is that Bitcoin’s consolidation was not based on adverse market conditions. Rather, it became a victim of its own success, as many investors wondered “what next” after hitting the milestone six-figure price.
Unwilling to carry the risk of the unknown on the other side of $100k, many investors opted to take profit. At its peak, 100% of BTC holders were “In the Money”. That percentage has since dropped to 98%, as per IntoTheBlock data.
Notably, MicroStrategy bought $5.4 billion worth of BTC at around $98k per coin. That move mopped up 55,000 Bitcoin, creating traction for a strong upside. Meanwhile, impending changes at the SEC with Chairman Gary Gensler’s January exit could add fuel to the upward propulsion in the coming weeks. These factors form a strong basis for BTC to go past $100k this time round.
Bitcoin price prediction
Bitcoin price pivots at $95,820, and the momentum indicator signals bearish control. That is likely to establish the first support at $94,940. A stronger downward momentum will break below that mark and potentially test $94,612.
On the other hand, moving above $95,820 will favour the buyers to take control. That momentum will likely encounter the first resistance at $96,370. However, extended control by the bulls could break above that mark and invalidate the downside narrative. Also, the price could advance further and test $97,000.
