Whales may push Bitcoin to an all-time high and ignite an altcoin season despite major obstacles.
Profit-taking from large cryptocurrency wallets comes at a time when Bitcoin dominance is increasing, with growing interest from institutional capital, and a chart movement similar to that seen before the surge in early November when Donald Trump won the U.S. presidential election. Despite solidifying Bitcoin's idea as a store of value, Trump himself is testing Bitcoin's resilience, as Republicans insist on their trade war while pressing the Federal Reserve.
In summary
The current movement of Bitcoin resembles the pattern seen before the recent surge.
Whales shed 50,000 Bitcoin in 10 days, indicating profit-taking.
The narrative of 'digital gold' is gaining strength alongside increasing institutional investment.
The Federal Reserve remains cautious, but the tensions related to the trade war ignited by Donald Trump continue to create uncertainty.
Whales may drive Bitcoin to $110,000, but the seas may become turbulent for Bitcoin.
The price of Bitcoin was trading sideways around $96,400 amid optimistic expectations, but without any catalyst for volatility. This is due to the U.S. Federal Reserve's decision to keep the annual benchmark interest rate unchanged, disappointing both optimists and pessimists alike.
This week on X, Ali Martinez indicated that Bitcoin's surge may have been delayed due to the unloading of large cryptocurrency wallets, a move that could lead to repurchasing.
Whales sold about 50,000 Bitcoin (BTC) over the past ten days. A clear signal of profit-taking at current levels.
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For his part, Rekt Capital believes that Bitcoin's market dominance could reach 71% in the coming months, preferring Bitcoin to recover from its all-time high of $110,000 before profit-taking during the altcoin buying season (altseason).
Bitcoin's dominance remains in the final stage of its overall bullish trend, heading towards 71% (red). Any drop to 64% would represent a new test. Success in this new test would allow the final trend to continue towards 71% (green).
The expert also looked at recent chart patterns that position Bitcoin towards targets of up to $110,000.
Digital gold
Rekt Capital's analysis is considered modest compared to a recent report from Standard Chartered, which does not rule out the possibility of Bitcoin reaching $120,000 in the first half of the year. In this case, the British bank is dealing with liquidity outflows from the U.S., which are partially heading towards Bitcoin, regarded as 'digital gold'.
The document signed by Head of Digital Asset Research Jeffrey Kendrick also highlighted the accumulation by whales and the net capital inflow to Bitcoin-based exchange-traded funds (ETFs).
Obstacles in Bitcoin's path
On the other hand, Trump imposed a 100% tariff on films produced outside the United States this week. This action, which sparked market discontent, precedes the Federal Open Market Committee (FOMC) decision, the body responsible for setting interest rates at the Federal Reserve, which may not necessarily represent a catalyst for Bitcoin's value increase, thus delaying optimistic short-term expectations. Furthermore, Bitcoin still faces the risk of being deemed illegal in Europe.
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