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Even though Bitcoin hasn’t made any major moves lately, market optimism on the coin has continued to grab the headlines, and all for the right reasons. After all, the royal coin has already surprised the market, with its massive moves that have silenced skeptics.
Bitcoin at $ 100,000 by the end of the year is a much anticipated move in the market. As we move into the last quarter of this year, Bitcoin is expected to push towards this major psychological barrier. However, even though Bitcoin exhibited a solid recovery from the May crash, at the time of writing, the effects of the September 7 flash crash had not completely worn off.
Nonetheless, as BTC exhibited daily gains of around 3% and traded at the $ 48.5 level at the time of publication, the market again watched BTC for some major moves. But before Bitcoin actually heads towards $ 100,000, its last stop would be the $ 85,000 mark, confirming a bullish move to $ 100,000.
The above sighting was part of a market report by the Decentrader trading platform, which presented short-term bullish signals, for BTC. He presented how we might prepare for a major run that first hits $ 85,000 before breaking through the psychological barrier of $ 100,000, creating an explosive Q4 2021.
BTC looks hyper bullish
Despite BTC trading below $ 50,000 throughout the week, the chain measures have led analysts to remain bullish on Bitcoin price action. A report said that the steadily declining supply of BTC on the exchanges put upward pressure on prices over the medium term. As demand increases as supply decreases, the price would increase.
Additionally, another factor that contributed to Bitcoin’s medium-term bullish trajectory was its SOPR which exhibited a similar trend in the months following the March covid crash. After the crash of the summer when SOPR strongly printed green candles, some minor sales at a loss were also observed on this decline of $ 50,000. So, SOPR presented a kind of downside buying opportunity as end sellers emptied before it skyrocketed, as seen in Q4 2020.
Source: DecenTrader
In addition, the active address sentiment indicator reset with a price change less than the active address change. With declining prices and constant network growth, the market will seek to catch up with network growth by noting price gains.
Source: DecenTrader
Thus, the report presented a hyper-bullish possibility that Bitcoin would hit $ 85,000 by the end of the fourth quarter. However, the Bitcoin options market did not look too big on gains at the moment, with the funding rate showing negative signs. In addition, BTC’s global open interest at expiration indicated year-end expectations of around $ 65,000, almost $ 20,000 below the target of $ 85,000.
So, is $ 100,000 too far?
Well not really. The reason is that, since the local July low of around $ 30,000, Bitcoin has gained almost 75% to reach the multi-month high price of over $ 52,000. Particularly from the current consolidation prices, another 75% price gain would take Bitcoin to $ 85,000. So a rally like this over the next three months won’t be a big surprise.
So, as BTC consolidates, an upward squeeze is expected to characterize the remainder of this year, similar to the events of 2020.
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