Amid the current bullish run, Bitcoin broke all its previous milestones after creating a new all-time high at $94,732 with a 2.55% hike in the last 24 hours. The confidence in the market and rising institutional investment solidifies the claim that it could surpass the psychological mark of $100,000 today.
MicroStrategy and BlackRock Fuels Rally In Bitcoin
The latest rally in Bitcoin is supported by MicroStrategy’s announcement to pile up their stakes with an additional $2.6 billion purchase. Furthermore, the debut of options for BlackRock’s spot BTC ETF also gained traction in the liquidity of the biggest cryptocurrency. Option derivatives provide easy accessibility to the asset while mitigating the risk of volatility.
The mainstream adoption of BTC after passing through the doors of Wall Street has boosted confidence in institutional and retail investors. The rally is building hope in the crypto community that it could extend the rally to retest the significant psychological level of $100,000.
Advertisement
However, the Relative Strength Index (RSI) indicator reflects 75, which is above the overbought level of 70. This signals a higher risk of a correction. Traders should perform their trade with caution when adding to their long positions, as the RSI’s move out of the overbought territory could provide a clear sign of a pullback.
#Bitcoin looks like it did in December 2020. Even the RSI is nearly identical. If true, $BTC will go to $108,000, drop to $99,000, and bounce to $135,000! pic.twitter.com/hsIBWBVGnl
— Ali (@ali_charts) November 20, 2024
Ali, a crypto analyst, suggests that the RSI is quite identical to BTC’s December 2020 chart. If history repeats itself, Bitcoin will easily cross the $100,000 mark.
Advertisement
Also Read: MicroStrategy Upsizes Notes Offering to $2.6B in Bitcoin Buying Spree