Whales may push Bitcoin to an all-time high and ignite an alternative season despite major obstacles.
Profit-taking from large cryptocurrency wallets comes at a time of increasing Bitcoin dominance, growing interest from institutional capital, and a chart movement similar to that seen before the rise in early November, when Donald Trump won the U.S. presidential election. Despite solidifying the idea of Bitcoin as a store of value, Trump himself is testing Bitcoin's resilience as Republicans insist on their trade war while pressuring the Federal Reserve.
In summary
The current movement of Bitcoin resembles the pattern seen before the recent rise.
Whales offload 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 sparked by Donald Trump continue to create uncertainty.
Whales could push Bitcoin to $110,000, but the sea may become turbulent for Bitcoin.
Bitcoin's price has been trading sideways around $96,400 amid optimistic expectations, but without any catalyst for volatility. This is due to the Federal Reserve's decision to keep the annual benchmark interest rate unchanged, disappointing both optimists and pessimists alike.
On X this week, Ali Martinez pointed out that the rise of Bitcoin may have been delayed due to the offloading of large cryptocurrency wallets, a move that could lead to a buyback.
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 its part, Rekt Capital believes 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.
Bitcoin's dominance is in a final stage of its overall bullish trend, heading towards 71% (red). Any drop to 64% would represent a new test. Successful testing would allow the final trend to continue towards 71% (green).
The expert also looked at recent chart patterns that positioned Bitcoin towards targets reaching $110,000.
Digital gold
Rekt Capital's analysis is 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 outflows of liquidity from the United States, which are partially directed towards Bitcoin, considered 'digital gold'.
The document signed by the Head of Digital Asset Research, Jeffrey Kendrick, also highlighted the accumulation by whales and net capital inflows into Bitcoin-based exchange-traded funds (ETFs).
Obstacles in Bitcoin's path
On the other hand, Trump imposed a 100% tariff this week on films produced outside the United States. This action, which provoked market discontent, precedes the decision of the Federal Open Market Committee (FOMC), the body responsible for setting interest rates in the Federal Reserve, which may not necessarily represent a stimulus for the rise in Bitcoin's value, thus delaying optimistic short-term expectations. Furthermore, Bitcoin still faces the risk of being deemed illegal in Europe.
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