Bitcoin has experienced a record bullish breakout, smashing all-time highs almost daily over the past three weeks. After an impressive rise, the price is less than 2% away from the $100,000 mark, a critical psychological level that could become a turning point for the entire crypto market. Investors and analysts are closely watching this milestone, as achieving it could fuel a new wave of market momentum and broader adoption.
On-chain data shared by Ki Young Ju, CEO of CryptoQuant, suggests that Bitcoin’s current rally could further develop. Ju points out that the market seems too early to call it a bubble, as the overall market capitalization has not increased significantly relative to cumulative on-chain capital inflows. This metric indicates that price action is supported by real demand rather than speculative hype, thereby building confidence in Bitcoin’s sustained upward trajectory.
With Bitcoin leading the way, its approach to $100,000 could set the tone for the rest of the crypto market. Whether it breaks through or encounters resistance, the outcome will likely influence market sentiment, offering a glimpse of what’s in store for the world’s largest cryptocurrency and the digital asset space as a whole.
Bitcoin Metrics Set High Expectations
Bitcoin has reached record highs, but it is “struggling” to break the critical $100,000 mark. Despite this, overall market sentiment remains optimistic, with analysts predicting that the price could continue to rise. Ki Young Ju, CEO of CryptoQuant, shared valuable insights on X, revealing that the Bitcoin cycle high could potentially surpass $141,000.
According to Ju’s analysis, current market dynamics suggest that BTC is still in the early stages of its bull market, making it premature to call the rally a bubble. A key data point that Ju highlights is the achieved ceiling, which is steadily increasing every day. The realized cap, calculated by adding the value of all BTC to the price at which they were last moved on-chain, serves as an indicator of total capital inflows into the BTC market.
Ju points out that historically, Bitcoin’s market capitalization tends to exceed its realized capitalization during bull markets, with market capitalization peaking as retail investors enter. During bear markets, market capitalization often falls below realized capitalization.
As the realized cap continues to rise, this supports the argument for a continued upward trajectory in BTC price, with the potential to reach or even exceed $141,000 before the market tops. This analysis reinforces the fact that, despite Bitcoin’s difficulties in surpassing $100,000, the market still has significant room for growth before reaching a potential peak.
Growing demand for BTC drives prices up
Bitcoin is poised to hit its highest weekly close in history as it approaches the $100,000 mark, holding well above $98,000. The price action confirmed the bullish, one-cup-and-handle accumulation pattern that began to form in November 2021.
This trend suggests that BTC is building a strong base, and a confirmed breakout above $98,000 could pave the way for a rise beyond the psychological $100,000 level as early as Monday. A strong close today could signal a continuation of the uptrend, with the potential for further upside momentum.
There is, however, some caution regarding the possibility of a weak breakout. If the price struggles to hold above $100,000 after a breakout, it could trigger a pullback, leading to a correction before the next phase of the rally.
A failure to sustain the price above $98,000 today would also increase the risk of a near-term retracement, with support levels below this mark becoming critical in determining the strength of the current rally. Despite the possibility of a minor correction, overall market sentiment remains optimistic, with many analysts expecting continued gains if the $100,000 level is crossed decisively.
Featured image of Dall-E, chart by TradingView
