Bitcoin’s consistent growth trajectory and recent break above $100,000, which cemented its position as the market leader, lend credence to this opinion. The trend shows a distinct breakout from its previous downward channel, seen in the provided Bitcoin chart, below. Bitcoin has been steadily rising over the past few months and is currently consolidating between $98,000 and $100,000.
This consolidation creates short-term resistance at the six-figure mark by hinting at market participants taking profits. Bitcoin is still backed by solid fundamentals, though, and there is a lot of buying activity at lower levels, especially between $93,000 and $84,000. Higher highs and few retracements are indicative of a longer bullish phase, which is implied by a supercycle.
A supercycle, as opposed to conventional cycles, propelled by speculative hype, depends on fundamental changes like institutional adoption, regulatory clarity and technological advancements. It appears that these elements are working in Bitcoin’s favor, setting it up for future growth. Additionally, the chart displays a robust rise in trading volume during recent price spikes, indicating intense market interest.
The modest slowdown in momentum over the last few days, however, indicates that investors are holding out for more catalysts. A breach of the next significant resistance level, which is $105,000, may allow entry into the $120,000–$140,000 range in the upcoming months. Depending on market sentiment and macroeconomic conditions, Kruger projects a possible local top by March.
This would not necessarily mean that a bear market is about to begin, though. As a result of its increasing use cases and increasing adoption, Bitcoin may instead continue to exhibit a bullish structure. As long as market conditions are favorable, Bitcoin has the potential to continue growing, which supports the supercycle hypothesis based on its current trajectory and market dynamics.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
