Bitcoin is back in the world spotlight after its price broke through the fantastic figure of $104,000. This drastic increase certainly raises many questions: What caused this price spike? Is this the peak or will it continue to rise?
Factors Driving Bitcoin Price Increase
Some of the main factors believed to be driving the increase in Bitcoin prices include:
Donald Trump Elected as US President: The crypto industry sees Trump's victory as a positive signal for bitcoin and other cryptocurrencies. Although Trump was once skeptical of bitcoin, in recent months he has shown full support for the digital asset. Trump's attitude towards crypto is quite different from other presidential candidates. So the election of Donald Trump as US president could be a positive signal for the crypto industry. #TrumpCryptoSupport
Paul Atkins Appointed as SEC Chairman: Overall, Donald Trump’s appointment of Paul Atkins as SEC Chairman is a strong signal that the US will adopt a more progressive approach towards crypto. This is seen from Paul Atkins’ track record which seems very pro-crypto. And this could end the anti-crypto movement by the SEC, as the SEC is known to be a tough institution against crypto, with over 104 lawsuits against crypto companies between 2021 and 2023. This has forced crypto companies to spend $426 million in legal fees. #AtkinsForSEC
Institutional Recognition: After Paul Atkins was appointed as SEC chairman, a number of large asset managers, such as Vaneck and Bitwise, rushed to file new ETFs after the news. More and more large companies and financial institutions are starting to look at Bitcoin as an investment asset, increasing demand and driving prices up.
Mass Adoption: The use of Bitcoin as a means of payment is increasingly widespread, both for daily transactions and long-term investments.
Inflation and global economic instability: Many investors see Bitcoin as a hedge against inflation and fiat currency instability.
November 28th cycle theory: The theory that states that Bitcoin price will always reach a new high on or around November 28th every 4 years. This theory is based on the observation that Bitcoin price will reach a new high on November 28th or in the near future. As in previous years, 2013, 2017, 2021, and maybe 2025 will be another bull market.
Bitcoin Technical Analysis
Regardless of the experts. I will share my personal view on the next movement of Bitcoin. Is it$BTC will increase many times from the current level, or now is the right time to sell our crypto assets.
Note: DYOR, this article is only informative, there is no element of invitation or advice to buy or sell a particular coin.
We can see, this time I use 4H timeframe analysis. In TF 4H, Bitcoin is still in a bullish position. Although yesterday when Bitcoin experienced a retest, the price plunged too deep. However, this is not a problem if the candle is not valid.
Bitcoin's position at the time I wrote this article was at $100,500, where MY possible projections for the future, bitcoin will experience a decline to $95000 - $97000 for a retest before continuing to increase. The target of the 4H TF is at a price of 100154 - 105378 - 109667 - 114345. Maybe someone asks, why did my arrow only reach the third target? because from the backtest that I did, often running profit until TP 3, and the probability for TP 4 is smaller. Keep in mind, the invalidation position of the 4H TF here is at level 93137
Now let's try to analyze from a much larger timeframe
From the chart we can see that Bitcoin is indeed in a bullish phase. When yesterday it broke ATH (All Time High) from 2021, Bitcoin experienced consolidation before finally continuing its upward trend. However, looking at the previous backtest, when it reaches point TP 3, there is usually a little resistance. Will it be the same this time? It could be yes, because the price is already very high. But it could also be no, because Bitcoin's fundamentals are continuously flooded with good news
It is important to remember that:
Bitcoin is highly volatile: Bitcoin prices are known to be highly volatile and can change drastically in a short period of time.
Investment risk: Investing in Bitcoin carries a high level of risk. Always do thorough research before deciding to invest.
No guarantees: No one can predict with certainty the future price movements of Bitcoin.
Conclusion
The significant increase in Bitcoin prices is evidence that this crypto asset is increasingly recognized and accepted globally. However, investors must remain vigilant and not get carried away by euphoria. Always consider the risks and diversify your investment portfolio.
