Bitcoin Price Analysis: BTC Struggles As Bears Look To Drive Price Below $100,000

Bitcoin (BTC) has registered a substantial drop over the past 24 hours and is down nearly 3.50% as sellers look to drive it below the crucial $100,000 mark. 

BTC raced to a new all-time high on Monday, witnessing substantial volatility in the hours leading up to Donald Trump’s inauguration. 

BlackRock CEO Predicts $700,000 For BTC 

BlackRock Chairman and CEO Larry Fink believes continued adoption of BTC could push the price to astronomical levels. Fink believes a jump to $700,000 is a possibility if BTC adoption continues at its current pace. The CEO made the comments during a discussion about crypto and artificial intelligence with Peng Xiao, the CEO of UAE-based artificial intelligence (AI) company G42. Fink called BTC a hedge against inflation, stating, 

“As I became a student of crypto, it was very clear to me that crypto is a currency of fear. But that’s OK. If you’re frightened of the debasement of your currency or the economic or political stability of your country, you can have an international-based instrument called Bitcoin that can overcome those local fears.”

Fink had shared a similar sentiment about the flagship currency last year as well, suggesting it was an investment for those “frightened of the world.” However, many in the financial world are contemplating investing in BTC, including the operators of a sovereign wealth fund contemplating a 2% to 5% allocation to Bitcoin. 

BlackRock has become deeply intertwined with crypto assets like BTC and ETH, primarily due to their spot ETF offerings. Spot Bitcoin and Ethereum ETFs have recorded billions in inflows over the past year, with BlackRock’s IBIT overtaking its gold ETF in assets under management. 

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC)’s action over the past couple of sessions has been bearish as sellers look to drive the price below $100,000. However, bulls have not ceded ground to the bears and have held firm above $101,000 for now. Despite BTC’s short-term struggles, markets are bullish about BTC in the long term, with 10x Research expecting the price to hit $122,000 by February before entering a consolidation phase. According to 10x Research’s Markus Thielen, BTC has been moving upwards in increments of $16,000 to $18,000, a trend the firm expects will continue. BTC tested a key support level when it dropped below $100,000 on Monday, coincidentally the same day it surged to a new all-time high. 

BTC’s positive outlook is supported by growing institutional activity, with spot Bitcoin ETFs recording over $800 million in inflows. BTC has become an increasingly attractive asset for institutional investors. According to data from the CME options market, sentiment around BTC is at its highest since Trump’s election. 

BTC was bullish last week, going above the 20-day SMA on Tuesday and settling at $96,566. Buyers retained control on Wednesday as BTC rose nearly 4% to move past the 50-day SMA and settled at $100,050. However, it lost momentum on Thursday, dropping to an intraday low of $97,094 before recovering to settle at $99,798. Bullish sentiment returned on Friday as BTC surged past $100,000 to settle at $103,732. BTC lost momentum over the weekend, registering a marginal drop on Saturday and over 2% on Sunday to end the weekend at $101,434.

Source: TradingView

BTC surged to a new all-time high on Monday, rising to $109,350. However, it faced significant volatility and dropped to a low of $99,514 before reclaiming $100,000 and settling at $102,408. Buyers retained control on Tuesday, rising 3,56% to $106,054. Markets turned bearish on Wednesday, and BTC dropped over 2% and settled at $103,715. The current session sees BTC down just over 1% and trading around $102,500. Sellers will look to drive the price below $100,000. However, buyers have held firm and will look to regain control and push BTC back above $105,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice