The price of the Bitcoin crypto asset has experienced a series of increases and has hit an all-time high (ATH), most recently breaking through US$89,968 (around IDR1.41 trillion).
Is now the right time to buy Bitcoin or sell it? Here are recommendations from market players.
After breaking through the ATH limit, Bitcoin moved relatively lower by 3.7% compared to the previous day’s position. As of 13:50 Indonesian time, Bitcoin was in the range of US$86,568 (IDR1.36 billion), but was still at a positive level of 15.3% compared to the previous week.
The Bitcoin rally trend in the last few days is indeed worth watching out for because the market has the potential to reverse direction in order to realize profits (profit taking), several analysts warn.
Moreover, this week there is an announcement of important data in the United States (US), inflation, and the planned speech by the Governor of the US Central Bank The Fed, Jerome Powell,” citing Ajaib Kripto research, Wednesday (11/13/2024).
Technical indicators show the rally has gone too far with the potential for some investors to realize gains and leverage to reach annual highs, as reflected in on-chain data.
However, the potential for a correction this time is relatively healthy, said Manish Chhetri, Director of The Catalysts.
Santiment data adds to the strong view of a correction in the next few days. This euphoria – although not as great as in mid-March – is being used by investors to sell Bitcoin.
Trump’s Pro-crypto Stance
According to other analysts, traders are waiting and assessing the remaining market impact of a number of claims by the president-elect of the United States (US), Donald Trump, on the digital asset market as a whole.
In his second term in the White House, Trump’s stance seems to have softened on crypto. He used to be skeptical but has now become an individual in the mainstream of supporting digital currencies
This happened after digital asset companies spent massive funds during the election campaign to promote their interests.
Trump in a number of campaigns pushed for more industry-friendly policies if elected. In addition to making the US the world’s crypto center, the post-Joe Biden administration claims that it will create a national strategic Bitcoin reserve policy.
The impact of Trump continuing to voice support for crypto has caused Bitcoin’s market value to jump to an all-time high.
In the long term, there are still many questions in the minds of crypto industry players, whether Trump and Republican lawmakers will focus on realizing their promises or prioritize a bigger agenda, for example repositioning US-China relations, thus pushing digital asset legislation down the list.
“While we are not ruling out further upside, there is a lot of good news that is currently being priced in,” wrote IG Australia Pty Market Analyst Tony Sycamore, quoted from Bloomberg News.
Bitcoin Price Potential to US$ 100,000
Bitcoin even surpassed US$ 90,000 on several trading platforms on Tuesday US time, such as the Coinbase Global Inc. platform. The bullish options betting market is concentrated on the largest token which reached US$ 100,000, based on data from Deribit.
The rally has been unstoppable since the news of Trump’s victory, with inflows into US Bitcoin exchange-traded funds (Bitcoin Spot ETFs) hitting $1 billion earlier this week, driven largely by BlackRock’s IBIT Bitcoin ETF of around $763 million.
As inflows into spot ETFs continue to outpace the amount of BTC sold by retail investors, Bitcoin could rally further.
“Trump’s re-election has created significant buying pressure, and that’s likely to continue for some time to come,” said Richard Galvin, founder of crypto investment firm DACM.