TLDR
Bitcoin briefly surpassed $87,700, reaching $88,800 with analysts predicting a climb to $100K+
Arthur Hayes calls this the “last chance” to buy Bitcoin under $100,000
Treasury buybacks and a weakening dollar (lowest since March 2022) are driving the rally
Michael Saylor’s Strategy purchased 6,556 more bitcoins for $555.8 million
Technical indicators show a bullish trend line forming with support at $87,300
Bitcoin continues its upward momentum, recently trading above $88,000 as several factors align to push the world’s largest cryptocurrency toward the $100,000 milestone. Market observers point to U.S. Treasury buybacks, dollar weakness, and fresh institutional investment as key drivers behind the current rally.
Bitcoin briefly surpassed $87,700 in recent trading, following a weakening U.S. dollar that has reached its lowest point since March 2022. The cryptocurrency is finding support around the $87,300 level, with technical analysts noting a bullish trend line forming on hourly charts.
Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, has made a bold prediction about Bitcoin’s trajectory. He suggested this might be the “last chance” for investors to purchase Bitcoin below the $100,000 mark, as upcoming U.S. Treasury buybacks could inject substantial liquidity into the market.
Hayes referred to these Treasury repurchases as a “bazooka” for Bitcoin’s price, potentially propelling it well beyond the $100,000 barrier that many analysts have been watching closely.
Institutional Interest Remains Strong
The recent price action has been bolstered by continued institutional interest. Strategy (NASDAQ), headed by Michael Saylor, purchased an additional 6,556 bitcoins for approximately $555.8 million, according to a filing released on Monday.
This acquisition brings Strategy’s total Bitcoin holdings to an impressive 538,200 coins. The purchase was funded through stock offerings, a strategy that has financed much of the company’s cryptocurrency acquisitions.
Despite Strategy recently flagging a nearly $6 billion unrealized loss on its digital asset holdings, the company continues to accumulate Bitcoin, signaling long-term confidence in the cryptocurrency.
Investment firms from Japan and the United Kingdom have also continued to pour capital into Bitcoin, further demonstrating trust in its long-term potential despite recent market volatility.
Technical Analysis Points Higher
Technical indicators suggest more upside potential for Bitcoin. Ryan Lee, Chief Analyst at Bitget Research, highlighted a “descending wedge breakout” in Bitcoin’s chart, supporting the bullish outlook.
The cryptocurrency is currently trading above both $87,500 and the 100-hour Simple Moving Average. Bitcoin consolidated gains above the 23.6% Fibonacci retracement level of the upward move from $86,400 to $88,800.
If Bitcoin can clear the immediate resistance near $88,800, analysts suggest it could climb to test $89,500. Breaking above this level might send the price toward $90,500 and potentially as high as the $92,000 mark.
Price Projections and Macroeconomic Factors
Several analysts have shared optimistic price projections for Bitcoin. Jamie Coutts from Real Vision forecasts that the cryptocurrency could reach as high as $132,000 by year-end, driven by the expanding fiat money supply (M2).
A #Bitcoin bid has overshadowed tightening liquidity over the past month. Yes, there is a lag between liquidity and Bitcoin, and therefore $BTC seems overstretched vs. global M2. My liquidity model, which I flagged 3 weeks back, suggested caution, especially with leverage.… https://t.co/FFX7NjmtOe pic.twitter.com/Amw8rBE03e
— Jamie Coutts CMT (@Jamie1Coutts) November 27, 2024
Economist Timothy Peterson offers an even more optimistic outlook, suggesting Bitcoin could hit $138,000 within three months, based on similar market patterns observed in the past.
The correlation between Bitcoin and gold has strengthened, with the precious metal rising nearly 30% this year. This relationship has historically benefited Bitcoin during periods of economic uncertainty.
President Donald Trump’s recent criticism of Federal Reserve Chair Jerome Powell has increased expectations of a potential interest rate cut. Trump called on Powell to “preemptively” lower rates or risk damaging economic growth, which could further weaken the dollar and potentially benefit Bitcoin’s rally.
However, not all analysts share the overwhelmingly bullish outlook. Michaël van de Poppe warned that weekend price rallies can sometimes be misleading, suggesting Bitcoin might experience a dip before breaking through major resistance levels.
The next significant resistance stands around $91,000, and until this level is surpassed, short-term price corrections remain possible. On the downside, immediate support exists near $88,000, with major support at $87,600 and $86,800.
As Bitcoin approaches the psychologically important $90,000 level, traders are closely monitoring key resistance points while maintaining awareness of potential pullbacks that could present buying opportunities for those looking to enter positions.
The convergence of weakening fiat currencies, rising institutional support, and potential Treasury buybacks has created a favorable environment for Bitcoin’s continued upward trajectory toward the much-anticipated $100,000 mark.
