Bitcoin's stability at a crucial level is crucial for the analyst's optimistic projection of further advancement.
Crypto Markets Surge: Bitcoin Breaks $109K, Thanks to Elon Musk and Bullish Analysts
Get ready for some good news in the stagnant cryptocurrency market! Bitcoin's (BTC) recent jump above $109,000 has ignited a much-needed spark, following last week's heated debate between Trump and Musk that temporarily dragged the top crypto asset below $100,000.
One market expert predicts the current rally could have even more room to grow.
Is the Bullish Trend Here to Stay?
Bitcoin has broken free from its temporary downtrend, having completed a bullish breakout from a consolidating triangle pattern that typically signals a continuation of the trend. According to crypto analyst Markus Thielen, the impressive strength of the current movement suggests new capital is fueling the rally as tariff concerns ease.
In the latest report from Matrixport, Thielen emphasized steady momentum despite the anticipated upward pressure from this week's Consumer Price Index data. This data is unlikely to impede Bitcoin's current upward trajectory, he added.
Furthermore, markets have scaled back their expectations for Federal Reserve rate cuts this year to just one, reflecting a more resilient US economy than anticipated earlier. Thielen underscored that Bitcoin's bullish trend remains strong, so long as the cryptocurrency stays above $105,075 – a level now serving as a critical technical threshold for sustained growth.
Selling Pressure Eases
On-chain data supports the sustainability of the rally as well. According to Glassnode, realized profit from long-term Bitcoin holders has plummeted by a whopping 89%, falling from around $126 million to $13.6 million based on 24-hour simple moving averages.
This drop in selling pressure from seasoned Bitcoin holders indicates that these investors are less inclined to cash out at current price levels as compared to their previous reaction to price rallies.
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[1] Institutional Adoption of Bitcoin
[2] Bitcoin Whale Accumulation
[3] Macro-Economic Factors and Bitcoin
[4] Long-Term Bitcoin Holder Behavior and the Market Impact
- The recent surge in Bitcoin's price, breaking the $109K mark, could indicate a prolonged bullish trend in the cryptocurrency market, according to analyst Markus Thielen.
- The decrease in realized profit from long-term Bitcoin holders, as shown by on-chain data from Glassnode, suggests these investors are less likely to sell at current price levels, possibly contributing to the market's continued upward trend.
- The resilient US economy, as indicated by scaled-back expectations for Federal Reserve rate cuts, could further support Bitcoin's bullish trend, as long as the cryptocurrency remains above $105,075, a key technical threshold for sustained growth.
