Here’s What Could Propel Bitcoin Towards $100,000

Bitcoin is still trying to reach the $100,000 milestone, but the recent dip put some distance between the number one cryptocurrency, and the 6-digit record.

Bitcoin’s path toward reaching $100,000 hinges on a delicate balance between short-term buying interest and long-term holder sales, as pointed out in a recent Bitfinex report.

November saw the price skyrocket to a record high of $99,600, despite a temporary dip earlier in the month. While Bitcoin has gained significant ground, the report suggests that the upcoming period will be shaped by both market demand and the ongoing selling activity by long-term holders (LTHs).

Recent market trends show that LTHs have been distributing their holdings, offloading nearly 509,000 BTC since September. This selling pressure raises concerns that if short-term holders (STH) can’t absorb these sales, Bitcoin could face volatility and even a brief pullback before reaching new highs. However, if demand from short-term holders strengthens, it could counterbalance the supply coming from long-term holders, potentially driving Bitcoin toward the $100,000 mark.’

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The report also notes that Bitcoin’s performance during halving years has historically been strong, with an average increase of nearly 39%. Yet, December could bring heightened volatility due to the expiry of significant options and potential profit-taking. Market watchers are advised to stay alert to these factors, as they could influence Bitcoin’s price movement in the short term.

The key will be whether enough fresh demand enters the market to sustain the rally or if long-term holders will continue to weigh down the price with their distributions.

Alexander Zdravkov