Bitcoin has been selling at close to $100,000 for a few days now, which many crypto bulls see as a major milestone for the asset. However, it hasn’t been able to break through that level.
Dow Jones Market Data says that the last time it was checked, BTCUSD -0.88%, the biggest cryptocurrency by market capitalisation, was trading at $94,998 on Monday afternoon. Last week, it got as high as $99,768.
“Big round numbers often stand in the way.” “It’s just how people are,” said Castle Funds’ top investment officer, Peter Eberle.
But, “once markets break through, they can make huge gains,” Eberle wrote in a column for MarketWatch. “Bitcoin may need a lot of tries to get above $100,000, but once it does, a $10,000 up day is possible.”
Analysts at crypto-trading company QCP Capital wrote in a Monday note that investors could slowly move their money from bitcoin to smaller-cap cryptocurrencies like ether ETHUSD 2.42% if it keeps running into problems at $100,000.
The QCP experts said that if bitcoin goes above $100,000, “we wouldn’t be surprised to see bitcoin squeeze higher and altcoins to take the back seat for a little longer.”
Greg Magadini, head of derivatives at Amberdata, says that traders are ready for bitcoin to break above $100,000 in December based on data from the options market.
Bitfinex experts say it’s important to keep an eye on the daily flows of exchange-traded funds investing in bitcoin as it continues to test $100,000.
The Bitfinex experts wrote, “A slowing of inflows would suggest that people aren’t interested in spot bitcoin at its current high prices and could be a sign of a bigger correction.”
