As Bitcoin (BTC) hovers near $100,000, momentum indicators suggest the asset will likely see further upside beyond this much-anticipated level.
In this case, a key indicator to watch is the Relative Strength Index (RSI), which, at around 82, suggests that Bitcoin is in the overbought zone.
However, the RSI remains below the extreme highs observed during Barchart’s over the last two years, as highlighted by Barchart’s analysis on November 23.
Although there are fears of retracing, the current RSI reading suggests that Bitcoin will potentially see more capital inflow before any notable corrections.
Bitcoin price analysis chart. Source: Barcharts
Bitcoin whales on a buying spree
Already, on-chain metrics point to Bitcoin experiencing unprecedented buying pressure, fueled by significant capital inflows from whales, suggesting strong confidence in the asset’s momentum.
Specifically, data shared by analyst Ali Martinez on November 23 noted that in 96 hours alone, whales had accumulated 40,000 BTC, valued at approximately $3.96 billion. This signals strong confidence in Bitcoin’s upward momentum.
Bitcoin whale buying activity. Source: Santiment/Ali_charts
This surge in buying pressure has been particularly notable across major trading platforms such as Binance, OKX, HTX, and Bybit, where the activity has reached new highs.
As Bitcoin inches closer to six figures, sustained capital inflows point to general market bullish sentiment inspired by the election of Donald Trump and the recent resignation of Gary Gensler from the helm of the Securities Exchnage Commission.
If this trend continues, breaking the $100,000 mark could attract further interest, but investors need to remain cautious amid anticipated volatility as the milestone approaches.
At present, the general market consensus is that Bitcoin is highly likely to hit $100,000. In this case, analysts are weighing in projecting bullish targets, such as $120,000, while others foresee a potential pullback that could usher in an altcoin season.
For instance, the pseudonymous analyst Stockmoney Lizards offered a mixed outlook. According to the expert, Bitcoin is nearing the completion of its Elliott Wave pattern, which predicts a peak between $105,000 and $110,000 before a potential retracement.
Additionally, key Fibonacci extension levels show strong confluence around the $105,000 and $110,000 range, aligning with the 3.618 extension.
Bitcoin price analysis chart. Source: TradingView/Stockmoney Lizards
Bitcoin price analysis
After hitting a record high of over $99,000, Bitcoin has entered a consolidation zone above $98,000. At press time, Bitcoin was trading at $98,648, up 0.75% in the last 24 hours. On the weekly chart, BTC has gained nearly 9%.
Bitcoin seven-day price chart. Source: Finbold
With technical indicators and on-chain data supporting a possible push to $100,000, attention is focused on Bitcoin reclaiming the $99,000 valuation. However, as Bitcoin consolidates, there is an increased risk of retracement to the $95,000 level, which could lead to further losses.
Featured image via Shutterstock
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