Bitcoin (BTC) is once again hovering near the $100,000 mark, and experts believe that this second attempt to break through could be a pivotal moment for the cryptocurrency. Despite a brief dip below $100K following a flash crash on December 5, Bitcoin’s recovery has reignited bullish sentiment, with predictions pointing to a new all-time high (ATH) of $111,850.

What Happened During Bitcoin’s First $100K Breakout?

The initial attempt for Bitcoin to breach the $100,000 milestone caused a lot of excitement among investors. However, the celebration was short-lived. On December 5, Bitcoin experienced a sudden 13.53% crash, falling to $90,000, which led to over $1.5 billion in liquidations within just 19 hours.

This downturn was attributed to Meitu, a Chinese technology company, which sold off a substantial portion of its cryptocurrency holdings, including 940 BTC and 31,000 ETH. This liquidation triggered a domino effect, pushing Bitcoin’s price lower.

Despite this setback, the market has shown resilience, and analysts believe that Bitcoin’s second push to $100K could be a sign of stronger upward momentum.

Why Is the Second Attempt to Break $100K Bullish for Bitcoin?

There are several reasons why Bitcoin’s second attempt at crossing the $100,000 threshold is seen as bullish:

1. Recovery After Flash Crash: Despite the dramatic drop, Bitcoin has already reclaimed $100,000, showing resilience. Its recovery from the December 5 crash suggests that Bitcoin is still on a strong upward trajectory.
2. Historical Precedent: In the past, Bitcoin has seen large price increases after brief dips. Analysts point out that Bitcoin’s price often rises more substantially after a failed breakout attempt, especially when the asset recovers quickly.
3. Bitcoin’s Year-to-Date Performance: As of December 7, Bitcoin has gained about 130% year-to-date, significantly outperforming many altcoins, including Ethereum (ETH), which stands at 70% for the same period. Despite the recent dip, Bitcoin remains the dominant cryptocurrency, with a secure and decentralized network, making it attractive to both institutional and retail investors.
4. Bullish Market Sentiment: Many industry experts predicted a bull run post-U.S. elections, and Bitcoin’s price trajectory is aligning with these forecasts. The fourth quarter has historically been a strong period for Bitcoin, and the current market trend suggests it could end 2024 on a high note.

What’s Next for Bitcoin?

Looking ahead, Bitcoin’s technical indicators are suggesting that it is poised for another bullish breakout. The key level to watch for Bitcoin’s next move is $103,600. If Bitcoin successfully surpasses this price, it could set the stage for a new all-time high, potentially pushing toward $111,850 by the end of 2025.

The continued bullish momentum can also be attributed to institutional adoption, as well as spot Bitcoin ETFs, which have seen significant inflows, contributing to a positive market outlook.

Conclusion: Is Bitcoin Ready for a New ATH?

While Bitcoin’s first attempt to break $100,000 was brief, the second breakout is shaping up to be much more sustainable. Bitcoin’s market momentum, combined with its resilient recovery after the December crash, suggests that a new all-time high could be on the horizon.

If Bitcoin continues to build on this momentum, the next target could very well be a price above $111,000, positioning Bitcoin for another major rally in the coming months.