Bitcoin (BTC) has experienced a significant rebound in recent weeks, surging over 8% to climb above $63,000. This upward momentum comes on the back of key economic shifts, including the U.S. Federal Reserve’s decision to cut interest rates, further fueling optimism around the world’s largest cryptocurrency. But with just a few months left in 2024, how high can Bitcoin really go? Could we witness BTC breaking the elusive $100,000 mark by year-end?
Over the last week, Bitcoin’s price demonstrated renewed strength, closing above $63,000 and successfully retesting the crucial resistance level at $64,000. This recovery followed a bounce from the 50-week Moving Average (MA), alleviating widespread fears of a further crypto market capitulation. Additionally, the Bitcoin Fear and Greed Index—an essential sentiment indicator—rose above 50% at the start of the week, signaling a more optimistic mood among investors.
Bitcoin’s resurgence comes amid broader financial market trends. The U.S. Fed’s rate cuts have lowered the opportunity cost of holding non-interest-bearing assets like BTC, providing an economic tailwind for cryptocurrencies. As a result, many analysts believe this could be the start of a larger bullish phase, with Bitcoin potentially entering a new phase of price discovery.
A critical factor influencing Bitcoin’s price surge has been the increased activity of so-called Bitcoin whales—investors who hold significant amounts of the cryptocurrency. Amid rising geopolitical uncertainties, particularly with NATO and BRICS tensions, whale investors have increased their Bitcoin holdings alongside other safe-haven assets like Gold. Gold itself recently hit an all-time high (ATH) of $2,630, indicating broader demand for inflation-resistant assets.
On-chain data highlights that Bitcoin’s supply on centralized exchanges (CEXs) has dropped to multi-year lows. Currently, only 2.3 million BTC remains on these platforms, down from 2.7 million in March. This reduction in available supply underscores a growing trend of long-term holding, which could help fuel further price increases.
In the last 30 days, over 91,100 Bitcoins were withdrawn from CEXs, with platforms like Binance and Coinbase Pro leading the charge. Moreover, U.S. spot Bitcoin ETF issuers have accumulated nearly $800 million worth of Bitcoin in just the past two weeks, further limiting the available supply on the market.
As we enter the final quarter of 2024, many market analysts are predicting that Bitcoin could reach new all-time highs (ATH), potentially closing the year near the $100,000 mark. This bullish outlook is supported by Bitcoin’s rebound in key technical indicators, particularly the Relative Strength Index (RSI), which recently crossed the 50% level and broke out of a long-standing downward trend.
Additionally, Bitcoin’s current price movement remains above the 200-day Moving Average, a crucial technical milestone. If BTC consistently closes above this level, it could pave the way for further upside, with the next major resistance point sitting around $69,000. This would mark a significant psychological barrier, and breaking it could lead to a new wave of bullish activity.
While there is still a chance that Bitcoin could retest its $55,000 support level, most indicators suggest that the bulls are firmly in control. Should BTC hold its current levels and continue to build upward momentum, a rally to $100,000 by the end of December 2024 is within the realm of possibility.
One of the driving forces behind Bitcoin’s current rise is the global geopolitical climate. The ongoing tensions between NATO and the BRICS nations have spurred a flight to safe-haven assets. Historically, assets like Gold have been seen as a hedge against economic uncertainty, but Bitcoin is increasingly playing a similar role in investors’ portfolios. As more institutional investors view BTC as a “digital gold,” its correlation with traditional assets like Gold has grown, further supporting its price.
Moreover, Bitcoin’s decentralized nature provides an added layer of security in times of geopolitical instability. Unlike fiat currencies, which can be impacted by government policies and sanctions, Bitcoin remains immune to direct manipulation by any single nation. This has made it an attractive option for investors looking to diversify their holdings and protect their wealth during turbulent times.
Whales, or large holders of Bitcoin, have historically played a significant role in driving market trends. According to on-chain data, the accumulation of BTC by whales has reached new highs in recent months. This trend has coincided with the ongoing geopolitical instability and rising demand for alternative assets.
In particular, the U.S. spot Bitcoin ETF market has seen substantial inflows, with nearly $800 million worth of BTC added in the last two weeks alone. This large-scale buying activity further supports the bullish outlook for Bitcoin heading into the final quarter of 2024.
With centralized exchange supplies dwindling, the continued accumulation by whales and institutional investors could fuel even greater upward pressure on Bitcoin’s price, leading to potential new all-time highs in the coming months.
Bitcoin’s recent price movements and growing accumulation by whale investors indicate that the cryptocurrency is entering a new phase of bullish momentum. While the risks of short-term pullbacks remain, particularly around the $55,000 support level, most indicators suggest that Bitcoin could continue its upward trajectory as we move into the final quarter of 2024.
The broader economic context, particularly the U.S. Federal Reserve’s rate cuts and rising geopolitical tensions, further supports the case for Bitcoin’s continued growth. Should Bitcoin break above the key resistance level of $69,000, a rally to $100,000 by December 2024 is increasingly likely.
However, as always in the world of cryptocurrency, investors should remain cautious and prepared for volatility. While the potential for gains is high, the inherent risks in the market remain, making it essential for investors to stay informed and manage their exposure accordingly.
Evie is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Get the latest Crypto & Blockchain News in your inbox.
Join Now