Why is Bitcoin rising? How high can Bitcoin go?
Bitcoin has finally crossed $100,000. After gaining 7% over the past three days and 4% today, BTC rose to $104,630 before returning to $101,132. This gives new hope to the crypto community as the bull cycle continues.
Let's examine what is happening in the market and why Bitcoin is on the rise today.
Bitcoin reached 100 thousand dollars
The $100k mark passed this morning has become a serious psychological resistance for Bitcoin. When we talk about how new acquisitions can support and increase the price, we have seen a significant amount of money coming in to increase the price.
The fear and greed index was recorded at 84 this morning, which shows that the market still has buying power. Since there is no moving average for support in this area, the major crypto needs to strengthen its support.
How high can Bitcoin go?
RSI is currently at 76.41 bulls are charging, but it will soon enter the overbought zone and should cool down. On the other hand, ADX is at 17.57 which is very low but has started to rise. Bitcoin is experiencing a heavy volume with a 35% increase in the last 24 hours, most of which came in the last hour.BTC has reached almost $100B in trading volume pushing the total crypto market market to $3.69 trillion. From 4.97%, Bitcoin's market dominance is 55.5%, which is relatively low.
There are many factors that add strength to Bitcoin. According to experts, the most influential part is pro-crypto President Donald Trump. After the US election, the crypto market got a big boost with Bitcoin and altcoins increasing in value. The community is feeling relaxed towards crypto as Trump is working to get pro crypto people into his administration.
Will Bitcoin crash? What next?
With Bitcoin over $100k, the alt market will obviously follow soon. There is no single reason why Bitcoin is on the rise today, but rather the collective power of many factors. BTC is expected to reach $120k soon, but RSI points to cool down. Also, the market tends to take advantage of such situations.
People are coming in with a lot of confidence and greed which is a good time for marketing to re-direct them. More than $130 million worth of money was liquidated in the past hour, most of which came from shorts. The market will take some action to retest the support and if it fails to do so, the price may panic. We also see high returns on Bitcoin etfs, but investors should be careful.
