As Bitcoin Trades Above $100K—Analysts Reveal What Could Be Next

Bitcoin has achieved a major milestone, trading at six-figure levels for the first time since its inception. On Thursday, the cryptocurrency reached a new all-time high of $103,679, marking a year-to-date surge of over 140% and pushing its market capitalization above $2 trillion.

This achievement has reignited enthusiasm within the investor community, solidifying Bitcoin’s position as a key player in the global financial market.

Despite this impressive feat, Bitcoin has experienced a slight retracement. At the time of writing, it trades at $101,573, still up by 6% in the past 24 hours.

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What Comes Next?

Market intelligence platform IntoTheBlock weighed in on this development, offering insights into Bitcoin’s potential trajectory. The platform’s analysts highlighted that Bitcoin’s capped supply and growing interest from institutional investors and even countries create significant upward potential.

Bitcoin breaks $100.000!

A major milestone, but what’s next?

With a limited supply and substantial interest from large investors (and even countries), the potential seems limitless. However, we recommend taking a look at prior cycles to evaluate potential.

This chart shows… pic.twitter.com/5b60oTRJy3

— IntoTheBlock (@intotheblock) December 5, 2024

However, past cycles suggest diminishing returns, with historical post-halving cycles showing returns of 7,900% in 2013, 2,560% in 2017, and 594% in 2021.

Based on these trends, IntoTheBlock expect a more conservative growth range of 100%-200% from the halving price, suggesting a peak between $130,000 and $190,000. IntoTheBlock analysts particularly wrote:

So while some are calling for a million dollars per Bitcoin, a more reasonable expectation would be a 100%-200% return from the halving price, placing the top between 130k and 190k.

However the analysts also pointed out: “That is, unless Bitcoin becomes a global reserve asset of course.”

Analyzing Market Trends and Investor Behaviour

Meanwhile, a CryptoQuant analyst has provided additional insights into Bitcoin’s recent performance and market behaviour. According to the analyst, Bitcoin purchases continue to rise, with the Coinbase Premium Index reflecting strong buying activity in the United States.

The index, which tracks the difference in price between Coinbase Pro and Binance, shows sustained positive data, indicating active participation by US investors.

The analyst emphasized the importance of monitoring this index alongside broader trend analysis. For example, during periods classified as “fear phases,” where buyers retreat and bearish momentum fails to materialize, the market often creates opportunities for strategic entry points.

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If the index remains in the positive zone, it signals a continuation of the uptrend, making pullbacks an optimal time for positioning. Until Bitcoin reaches what the analyst describes as the “excess phase,” buying positions should be held, while profitable positions should be secured to mitigate risk.

Featured image created with DALL-E, Chart from TradingView