Bitcoin [BTC] has experienced an outstanding year in 2024, achieving an impressive 129% increase in value since the beginning of the year. This surge can be attributed to several significant events, including the halving in April and the impact of the U.S. Presidential election.
As Bitcoin edges closer to the $100,000 milestone, all attention is focused on its next steps. Analysts are positive about its future, with many anticipating further growth as market dynamics evolve.
While Bitcoin continues its upward trajectory, the big question looms: will it breach the $100K mark and continue its ascent?
Bitcoin’s Remarkable Post-Halving Rally
The 2024 halving in April reduced miner rewards, leading to a decrease in new BTC issuance to 3.125 BTC per block.
Historically, halving events have caused supply shocks that have boosted price momentum in the subsequent months. As expected, Bitcoin surged by more than 85% since April, surpassing $95,000 by December.
This rally has been supported by a combination of macroeconomic factors and industry-specific conditions. Bitcoin’s portrayal as “digital gold” gained traction amid worries about inflation and geopolitical tensions, attracting institutional investors.
In addition, renewed interest from retail investors and the outcomes of the U.S. Presidential election, which emphasized crypto-friendly policies, added to the overall positive sentiment.
Charts display a consistent upward trend backed by robust on-chain metrics, including a rise in active addresses and increasing open interest in BTC futures.
Nevertheless, with the RSI hovering around 61, there are indications that the asset might be approaching an overbought state, hinting at a possible period of short-term consolidation.
Approaching the $100K Threshold and Evolving Market Conditions
Bitcoin’s journey towards $100,000 remains a central narrative in the market. On November 22nd, BTC briefly touched $99,000 before retracting to the $96,000-$98,000 range.
Meanwhile, Bitcoin Futures on the Chicago Mercantile Exchange (CME) surpassed $100,200 twice within one week by November 29th, sparking speculation that actual prices could soon follow suit.
Although crossing the $100K mark is largely psychological, it symbolizes a crucial turning point for market sentiment.
Despite Bitcoin’s gains, its dominance dropped to 56.1% by November 30th as investors shifted focus towards alternative coins, indicating the potential start of an altcoin season.
This decline in dominance suggests profit-taking by Bitcoin investors and a renewed interest in higher-risk assets, signifying a shift in market dynamics.
Bitcoin’s immediate path hinges on whether it can break through the psychological barrier of $100K and uphold its market dominance amidst the growing activity in alternative coins.
Future Prospects for Bitcoin
The trajectory for Bitcoin points towards continued growth, with analysts like Raoul Pal predicting a local peak of $110,000 by early 2025 and a possible peak later in the same year.
Macro factors such as the effect of the April halving and institutional acceptance continue to reinforce long-term bullish sentiment. Nevertheless, risks like regulatory modifications and broader market corrections could moderate these gains.
As alternative coins gain momentum, Bitcoin’s dominance may face additional challenges, highlighting a more diversified market landscape.
Whether Bitcoin can surpass the psychological $100K hurdle and maintain its upward trend will rely on renewed buying interest and broader trends in the cryptocurrency market.