Bitcoin Approaches $100,000

As Bitcoin nears $100,000, market watchers anticipate short-term consolidation, though the asset’s uptrend is likely to continue.

Short-Term Outlook

Bitcoin (BTC) returning to $100,000 could prompt “short-term consolidation,” analysts warn, but the long-term outlook for the cryptocurrency remains positive. Key psychological levels often lead to profit-taking, but analysts point to gold’s rise to new all-time highs as a sign of growing momentum for alternative assets.

Analysts at Matrixport noted that the shift in sentiment starting in summer 2023, when gold broke above $2,000, has improved the outlook for Bitcoin, which is increasingly seen as a form of “digital gold,” a narrative popularized by investment giant BlackRock.

> “Regardless of the prevailing narrative, both gold and Bitcoin are poised to grow in importance as alternative assets gain momentum. While key psychological levels, such as gold at $3,000 or Bitcoin at $100,000, could trigger short-term consolidation, the broader uptrend likely remains intact.”
> — Markus Thielen, independent analyst

Risks and Opportunities

Bitcoin now faces two potential risks and two opportunities. First, there are signs that investor sentiment remains fearful. Although the fear and greed index has moved out of the extreme fear zone (18), it still sits at 22 in the fear zone. Historically, Bitcoin and other cryptocurrencies perform better when the index is in the greedy zone. This ongoing fear is reflected in spot Bitcoin exchange-traded funds, which have lost $143 million in assets, bringing total weekly outflows to $870 million, with outflows occurring for five consecutive weeks.

Second, Bitcoin has formed a death cross, as the 50-day and 200-day Weighted Moving Averages crossed, signaling potential downside.

Read more: Bitcoin death cross signals further downside as S&P 500 nears bearish pattern