Bitcoin has experienced a record bull run, breaking all-time highs almost daily over the past three weeks. After an impressive escalate, the price is less than 2% from the $100,000 mark – a critical psychological level that could become a turning point for the entire cryptocurrency market. Investors and analysts alike are closely watching this milestone because if it breaks, it could spark a recent wave of market momentum and broader adoption.
On-chain data shared by CryptoQuant CEO Ki Youthful Ju suggests that Bitcoin’s current rally may still have upside potential. Ju emphasizes that the market seems too early to trigger a bubble as the overall market capitalization has not increased significantly compared to the cumulative capital inflows on the chain. This indicator indicates that price action is being supported by real demand and not speculative hype, reinforcing confidence in Bitcoin’s continued bullish trajectory.
With Bitcoin leading the pack, its approach to $100,000 could set the tone for the rest of the cryptocurrency market. Whether it breaks through or encounters resistance, the outcome is likely to influence market sentiment, providing a glimpse into what lies ahead for the world’s largest cryptocurrency and the digital asset space as a whole.
Bitcoin indicators set high expectations
Bitcoin sets record levels, but struggles to break the critical barrier of $100,000. Still, overall market sentiment remains positive, with analysts predicting the price could continue to rise. CryptoQuant CEO Ki Youthful Ju shared valuable insights on Xrevealing that Bitcoin’s cycle top could potentially exceed $141,000.
According to Ju’s analysis, current market dynamics suggest that BTC is still in the early stages of a bull market, which makes it premature to call the rally a bubble. The key information that Ju highlighted is the realized limit, which continues to escalate every day. The realized cap, calculated by summing the value of all BTCs at the price at which they were last transferred on-chain, serves as an indicator of the total capital inflow into the BTC market.
Ju points out that historically, Bitcoin’s market capitalization has typically exceeded realized capitalization during bull markets, with market capitalization peaking with the entry of retail investors. During a bear market, market capitalization often falls below realized capitalization.
As the realized cap continues to rise, this supports the case for the BTC price to continue its upward trend, with the potential to reach or even exceed $141,000 before market highs. This analysis confirms that despite Bitcoin almost struggling to break $100,000, the market still has significant room to grow before a potential peak is reached.
The growing demand for BTC causes the price to escalate
Bitcoin is on the brink of its highest weekly close ever, approaching the $100,000 level, currently holding well above $98,000. The price action confirmed the bullish accumulation pattern that began to form in November 2021.
This pattern suggests that BTC is building a robust base, and a confirmed break above $98,000 could set the stage for a pointed rally above the psychological level of $100,000 on Monday. A robust close today could signal a continuation of the uptrend, with the potential for further growth.
However, some caution should be exercised regarding the possibility of a faint breakout. If the price struggles to stay above $100,000 after a breakout, it could trigger a pullback, leading to a correction before the next phase of growth.
Failure to stay above $98,000 as of today would also escalate the risk of a near-term bounce, with support levels below this level becoming key in determining the strength of the current rally. Despite the possibility of a minor correction, overall market sentiment remains positive, with many analysts expecting further gains if the $100,000 level is decisively broken.
Featured image from Dall-E, chart from TradingView
