Here’s Why Bitcoin Price Rally Isn’t Over

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As a seasoned crypto investor with over a decade of experience navigating market fluctuations, I have learned to stay adaptable and patient in the ever-evolving digital asset landscape. The recent bounce back in Bitcoin’s price to $100K levels is reminiscent of the 2017 bull run, but with more maturity and stability this time around.

The price of Bitcoin is rebounding strongly, approaching the $100K mark again. The trend upward for Bitcoin remains robust as Tether keeps issuing more USDT, adding liquidity to the market. Additionally, large Bitcoin holders are accumulating more Bitcoin and on-chain signals suggest we might not have peaked yet.

Bitcoin Price Rally Can Continue to New All-Time High

Over the past day, Bitcoin’s price has rebounded once more from its support level at $96,000. At the time of this writing, Bitcoin is currently being traded at $99,376, representing a 2.17% increase. Its market capitalization stands at an impressive $1.97 trillion. Interestingly, Bitcoin’s daily trading volumes have decreased by 33%, now sitting at around $84 billion.

During the recent fall in Bitcoin’s price to approximately $96,000, data from on-chain indicators shows that large Bitcoin investors (whales) have persistently bought more Bitcoin, acquiring around 20,000 coins valued at about $2 billion, according to crypto expert Ali Martinez.

Martinez further pointed out that local peaks in Bitcoin’s price tend to align with figures close to the Short-Term Holder Cost Basis plus one standard deviation. Currently, this crucial level is estimated to be approximately $112,926, which could indicate a significant barrier for Bitcoin as it attempts to advance.

According to analyst Ali Martinez’s analysis of on-chain data, the strongest level of support for Bitcoin right now is around $96,870. This is because about 1.45 million different wallets collectively hold approximately 1.42 million Bitcoins that were purchased at this price point. This area is significant as it represents a high demand zone. Martinez posits that if this level remains stable, Bitcoin’s price trend should continue to rise.

As a crypto investor, it’s fascinating to see the momentum building up for spot Bitcoin ETFs. The combined BTC holdings have surpassed the amount associated with Satoshi Nakamoto himself, which is quite an achievement. Last Friday, the total inflows reached approximately $376 million, and BlackRock’s IBIT contributed a substantial portion of that, around $257 million. Earlier this week, IBIT achieved a significant milestone by hitting $50 billion in Assets Under Management (AUM), all within less than a year since its launch. The pace at which these numbers are growing is truly remarkable!

Tether’s USDT Printing Can Provide Further Push

Tether, a company responsible for creating stablecoins, has produced an additional $2 billion worth of USDT on the Ethereum blockchain, increasing the liquidity available for Bitcoin and other cryptocurrencies. Currently, the total amount of USDT generated by Tether stands at $19 billion across both the Ethereum and Tron networks. Over the past four days alone, they’ve issued $4 billion in new stablecoins, according to Spot On Chain.

Over the last month, a significant surge in new funds has pushed Bitcoin’s value past the $100,000 mark on two occasions. Consequently, financial experts predict that this upward trend might persist even more. Meanwhile, Tether is maintaining and growing its influence within the crypto market.

As an analyst, I’d express it as: Beyond my previous points, I should mention that Tether has been actively seeking new avenues for market growth. Recently, Tether introduced the Wallet Development Kit (WDK), a versatile, open-source toolkit designed to facilitate developers in creating self-custodial wallets supporting both Bitcoin and Tether (USDT).

As an analyst, I envision that the implementation of the WDK (Web3 Data Kit) empowers us all with financial self-reliance. It provides a platform where humans and artificial intelligence can seamlessly handle their digital resources autonomously, fostering independence in digital asset management.

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2024-12-07 10:40