- Bitcoin secured a new all-time high of $68,527 on Tuesday.
- The cryptocurrency market cap crossed $3 trillion.
- Bullish technical setup shows BTC/USD taking $100,000 in the near term.
JAIPUR (CoinChapter.com) – Bitcoin buyers built upon the asset’s rallying momentum that began on Saturday, pushing the BTC/USD pair to a new all-time high of $68,623 on Tuesday. The top digital token achieved the latest price milestone as the cryptocurrency market cap surpassed the $3 trillion mark.
A barrage of bullish tweets followed as Crypto Twitter welcomed the move anticipating BTC to chart further highs as the year nears its end.
Related: Bitcoin week ahead Ep16: BTC retakes $65K against rising U.S. CPI forecasts
The flagship cryptocurrency’s explosive upside move even forced mainstream asset management firms to switch allocation portions with gold.
“Jeffries, a $450B asset manager, has sold a portion of its gold allocation to purchase #Bitcoin.
Eventually every asset manager in the world will do this.
Buckle up.”
said Dan Held
Bullish On-Chain Movement
On-chain analyst Willy Woo observed the benchmark digital asset’s price figures changed hands and found traders comfortable with BTC/USD spot rates between $50,000 to $60,000.
“Contour map of every bitcoin at the price they last changed hands between investors. Huge price validation between $50k-$60k.
#Bitcoin as a $1T asset class IMO is now cemented; hard to see it dropping below this zone.”
noted Willy Woo
Woo based his analysis on a contour map sourced from leading on-chain market analytics firm Glassnode. In a separate observation, the firm further fuelled bullish Bitcoin price speculations based on ongoing activity in crypto exchanges.
Exchange Outflows
As per Glassnode, BTC deposits continued depleting from exchanges even at all-time high prices. However, outflows haven’t taken a backseat indicating that holders are not ready to sell just yet. In the latest weekly on-chain newsletter, the Zug-based crypto market tracker noted an average outflow of 5,000 BTC per day.
Related: Bitcoin Exchange Flows Flies Into Bullish Territory, Top Analyst Finds
“As a result of continued exchange outflows, the aggregate BTC exchange balance has fallen to multi-year lows of 12.9% of circulating supply. Even as Bitcoin consolidates below ATHs, exchange reserves continue to deplete.”
observed the research team at Glassnode
The on-chain activity also seemed to recover, with daily transfers crossing 225,000 transactions per day. Although the figure is well below the “Hype and Euphoria” phases of 2017 and Q1 2021 and consistent with 2019-20 bear market levels, there is a 22% improvement from the numbers seen in this year’s intermittent bearish phase.
Bitcoin’s recurring all-time high feat also lifted the entire cryptocurrency market, leading to a $3 trillion valuation. But the bull run is yet to diffuse as analysts called for BTC/USD to hit $100,000 this quarter.
BTC/USD On The Way To $100,000
The BTC/USD pair’s trend followed a cup and handle pattern over the last seven months. A cup and handle represent a technical formation where the cup (price downtrend and uptrend) follows a “u” shape and the handle has a slight downward drift.
Traders across all financial markets leverage the pattern to spot buy opportunities to log long-term profits. Twitter-based analyst Nunya Bizniz pointed out the same for Bitcoin in the latest tweet. According to Pladizow, the benchmark crypto-asset formed a 20-day handle. And based on internationally acclaimed trader Thomas Bulkowski’s principles, BTC/USD’s current cup and handle technical setup is quite bullish.
The formation has a depth coinciding with the market bottom on July 20, 2021, a depreciation of $38,296 from current prices. Nunya opined that BTC has the potential to spike upwards by the same amount, leading to a $100,000+ price target.
Related: Bitcoin (BTC) could top $100,000 early next year, supported by bullish indicators
However, Bitcoin’s rally to $100,000 only when bulls manage to claim the $72,000 resistance, which coincides with the upper trendline in which the greatest digital asset has been trading since July end.
