Despite the fact that Bitcoin has not made any significant moves recently, the market’s bullishness on the coin has continued to make headlines, and for the right reasons. After all, the king coin has previously surprised the market with massive moves that have left skeptics speechless.
The market expects Bitcoin to reach $100,000 by the end of the year. As we approach the fourth quarter of this year, Bitcoin is expected to push past that major psychological barrier. However, despite Bitcoin’s solid recovery from the May crash, the effects of the September 7 flash crash had not yet worn off at the time of writing.
Nonetheless, with BTC gaining around 3% per day and trading at $48.5 at press time, the market is once again looking to BTC for major moves. However, before Bitcoin makes a move towards $100K, its last stop would be the $85K level, which would confirm an upward move to $100K.
The aforementioned observation was part of a market report by trading platform Decentrader, which presented bullish signals for BTC in the near term. It demonstrated how it could be preparing for a major run, first reaching $85,000 before breaking through the psychological barrier of $100,000, resulting in an explosive Q4 2021.
BTC appears to be extremely bullish.
Despite the fact that BTC has been trading below $50,000 all week, on-chain metrics have led analysts to remain bullish on Bitcoin price action. According to one report, the constantly decreasing supply of BTC on exchanges is putting upward pressure on prices in the medium term. The price would rise as demand increased and supply decreased.
Another factor that contributed to Bitcoin’s bullish mid-term trajectory was its SOPR, which followed a similar pattern to the months following the March coin crash. Following the summer crash, during which SOPR was heavily printing green candles, some minor selling at a loss was also observed on this pullback from $50,000. As a result, SOPR presented a sort of buy-the-dip opportunity as final sellers were flushed out before it moved higher, as seen in Q4 2020.
Furthermore, the Active Address Sentiment Indicator had been reset with a price change that was less than the active address change. With prices falling and network growth continuing, the market will look to catch up with network growth by noting price gains.
As a result, the report predicted that Bitcoin would reach $85K by the end of Q4. However, with the funding rate showing negative signs, Bitcoin’s options market does not appear to be showing too many gains at the moment. Furthermore, BTC’s global open interest by expiry indicated that year-end expectations were around $65K, which is nearly $20K less than the target of $85K.
So, is $100,000 too much to ask?
No, not at all. The reason for this is that Bitcoin gained nearly 75% from its July low of around $30K to reach a multi-month high of over $52K. Notably, based on current prices, a 75 percent price increase would take Bitcoin to $85K. So a rally like that in the next three months will come as no surprise.
As a result, while BTC was consolidating, a squeeze upward should characterize the rest of this year, similar to events in 2020.