Bitcoin (BTC) is witnessing a volatile market, with periods of bearish pressure keeping it from surpassing the $100K mark. Despite this, the cryptocurrency remains in an upward trajectory and is poised for a significant rise in early 2025. Bitcoin’s price could surge to as high as $115,000 before it hits a potential bear market. Key factors, including the growing institutional interest and strong technical indicators, point to a powerful continuation of the bull run in the coming months.
The market has been testing Bitcoin’s resilience over the past few weeks, especially since the beginning of the second fortnight of December. The price has been under significant pressure, preventing it from closing the year above the much-anticipated $100K level. However, Bitcoin’s recent price action has shown that the cryptocurrency is primed for an upswing in the near future. In the last few days of 2024, Bitcoin has managed to reclaim the $95,000 range, indicating growing bullish sentiment as it approaches the end of the year.
The price action is not the only indicator of Bitcoin’s potential rise. An essential factor contributing to the continued upward movement is the growing institutional demand for the cryptocurrency. This has resulted in a major depletion of Bitcoin reserves across exchanges, with levels now lower than they’ve been since 2016. The decrease in available supply suggests a strong demand for Bitcoin, and with institutional investors holding significant amounts of Bitcoin, they are likely to play a pivotal role in the upcoming price movements.
From a technical standpoint, Bitcoin is still in the midst of a bullish phase. The cryptocurrency’s price has been consolidating within a rising parallel channel, which historically indicates an ongoing bull run. Technical analysis suggests that Bitcoin has not yet reached its peak for the current cycle. A key indicator pointing to further growth is the Relative Strength Index (RSI), which has yet to exceed 80. In previous bull runs, Bitcoin’s RSI reached as high as 94, signaling that the current cycle still has room to grow.
Currently, Bitcoin’s RSI is hovering between 76 and 77, indicating that it is not yet in overbought territory. Historically, when Bitcoin’s RSI has reached the 90-94 range, the price has peaked. Since it has not yet reached those levels, this suggests that Bitcoin’s rally has not fully played out, and the token still has plenty of upward momentum left before the market enters a correction phase.
Institutional interest in Bitcoin has been a major factor in propelling the price upward. With nearly one million BTC held by institutions, their continued accumulation of Bitcoin could result in significant price movements. The sheer volume of Bitcoin locked away by institutions creates a supply shortage on exchanges, which in turn drives up demand. Additionally, many institutional investors are looking to Bitcoin as a hedge against inflation and traditional financial market volatility.
Another sign of institutional optimism is the rise in stablecoin reserves, which have grown to $45 billion. The influx of stablecoins into the market indicates that investors are positioning themselves for the next big move in the crypto space. As stablecoins are typically used for trading and investing in assets like Bitcoin, their growing reserve suggests that an explosive upward movement is imminent.
Looking ahead to 2025, Bitcoin is expected to experience a strong bull run. Despite the bearish pressure that has plagued the market in recent weeks, technical indicators and increasing institutional demand signal that a powerful price surge is likely. With Bitcoin set to open the year at $95,000, analysts expect it to hit $115,000 in the early part of 2025. The continued depletion of exchange reserves and the massive interest from institutional investors suggest that Bitcoin will see a significant rise before encountering any meaningful corrections.
Many experts believe that Bitcoin could even reach $120,000 in early 2025 as the market gains momentum. As institutional investors continue to accumulate Bitcoin and stablecoin reserves rise, the combination of supply constraints and growing demand will likely propel Bitcoin to new heights.
Bitcoin’s current price cycle is far from over. Despite facing periods of bearish pressure, the technical indicators suggest that the cryptocurrency is still in the midst of a bull run. With institutional demand driving the market and supply on exchanges dwindling, Bitcoin is poised to surge higher in early 2025. The price could very well hit $115,000, marking a significant milestone in its ongoing bull market before any potential correction. For investors and market watchers, Bitcoin’s upward movement promises an exciting year ahead, with the cryptocurrency continuing its quest for new all-time highs.
Dan hold a master of finance from the ISEG (France) , Dan is also a Fan of cryptocurrencies and mining. Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9
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