Why $100,000 Could Change The History Of Bitcoin?

Bitcoin is approaching the long-awaited grail of $100,000, and the tension is rising. Yesterday, observers thought they would witness the big leap, but the flagship crypto is playing coy, flirting with the peaks without fully venturing there. Behind this euphoria lies a far more complex reality: massive sales to defuse, and a market ready to explode. So, is it just a pause or a real trap for investors? Let’s dive into this ascent that is as fascinating as it is concerning.

Bitcoin: Why the $100,000 are not yet won

The price of bitcoin brushed against $100,000 yesterday, reaching $99,500 on Bitstamp, before briefly retreating below $96,000. However, the bulls do not seem to have said their last word. According to trader Skew, the symbolic barrier is almost within reach, but a major obstacle persists: an accumulation of “sell walls” in the $99,000 area.

https://twitter.com/52kskew/status/1859830842467778882

These massive sell orders are slowing down BTC’s ascent, but each advance nibbles away at this obstacle. Skew predicts that a breach of $100,000 could trigger a “violent breakout”.

Nonetheless, some investors still risk taking short positions, hoping for a market reversal. A risky strategy: recent data shows that more than $115 million in shorts were liquidated in just one day.

A situation that Keith Alan, co-founder of Material Indicators, describes as a “short trap”:

“If you take the bait, prepare to be crushed.”

Once this resistance is lifted, bitcoin could well enter a parabolic phase, sweeping everything in its path.

• $115 million: amount of shorts liquidated in one day;
• $60 billion: spot trading volume on Binance as it approached the old records;
• 50%: drop in this volume after the peak, a sign of a cautious market.

Crypto: The volume pause, a calm before the storm?

If BTC’s figures are impressive, the rest of the crypto market shows a more cautious face. On Binance, for example, spot trading volumes saw a spectacular peak of $60 billion at the beginning of November, before halving. A decline that intrigues analysts.

For Darkfost from CryptoQuant, this slowdown might indicate a period of reflection for investors. “Less activity can reduce volatility, but it also curbs euphoric surges,” he explains.

This decline in volumes is also a warning: a market that is too calm could lead to a volatility explosion at the slightest significant movement. This general caution does not prevent some assets from exploring new heights, but it highlights a reality: even at the dawn of $100,000, the market remains fragile, dependent on a balance between optimism and distrust.

In this environment, every decision can weigh heavily. Seasoned investors know this: patience is as formidable as it is risky.

Crossing $100,000 will not be a mere formality for bitcoin. Between significant challenges related to derivatives and the need for institutional coordination, this flagship crypto must prove that its potential can surpass the whims of the markets. The road is still long, but the suspense remains at its peak.