- The CEO of CryptoQuant advises investors to hold their positions as Bitcoin surges to $100,000.
- The cryptocurrency has reached a high of $104,100. This gain was driven by strong bullish sentiment and institutional fear of missing out (FOMO).
- Meanwhile, Mt. Gox transferred 24,000 BTC, raising fears of increased selling pressure in the market.
Bitcoin (BTC) has solidified its dominance in the cryptocurrency market by surpassing the highly anticipated $100,000 mark. That quickly began widespread Bitcoin news in seconds. This milestone follows a series of price increases fueled by bullish sentiment and growing institutional adoption.
BTC price briefly peaked at $104,100 before falling below the threshold, showcasing the asset’s characteristic volatility. When writing, the BTC price was trading at $98,300. Its 20-day EMA provided critical support amidst market fluctuations.
This psychological breakthrough is significant for Bitcoin as the leading cryptocurrency. With this, many investors anticipate a sustained rally beyond $100K. However, profit-taking driven by fear has added downward pressure, contributing to the heightened volatility visible on the daily chart.
To address market anxiety, industry leaders have urged investors to remain patient. CryptoQuant CEO Ki Young Ju cautioned against premature profit-taking. By saying so, he emphasized that Bitcoin is currently in a phase of high volatility and price discovery.
Ju warned that exiting positions too soon could result in missed opportunities for further gains. He advised holders to resist the urge to sell hastily. He even shared his past mistakes that he regrets.
He wrote – “I repeat, DO NOT SELL YOUR BITCOIN.”
From a broader angle, he sees the current Bitcoin gains as still premature, and it has time to mature fully. Continue reading for more insights.
Why CryptoQuant CEO Urged Caution Amid Bitcoin’s Rally?
Ki Young Ju sought to encourage investors to stay patient during Bitcoin‘s ongoing rally by sharing a personal story. Reflecting on events from four years ago, he recounted the moment Bitcoin first hit $10,000 after a prolonged period of consolidation.
Excited by the milestone, Ju sold his holdings prematurely, only to watch the cryptocurrency continue its ascent. In his excitement, he even captured a screenshot of the $10,000 price milestone on Binance.
However, what followed was a lasting realization. Since that breakthrough, Bitcoin has never fallen below $10,000. This underscores the importance of patience during pivotal market moments.
Ki Young Ju shared another personal experience emphasizing the value of patience during Bitcoin’s market cycles. He revealed that he once opened a “generational long” position at $17,000. He did this to hold it for years and eventually pass it to his grandson.
However, he exited the trade prematurely, a decision he now considers one of his biggest regrets. Reflecting on this mistake, Ju admitted that even seasoned traders can succumb to impulsive decisions despite their expertise.
He emphasized a critical lesson learned through experience. Bitcoin undergoes a significant price discovery phase approximately every four years.
Using this perspective, Ju urged the crypto community to step back. He advised them to focus on the broader picture rather than reacting hastily during volatile market conditions. His key advice: “Do not sell your Bitcoin.”
Ju pointed out that the BTC price is currently in a strong uptrend. That was further bolstered by its reputation as an inflation hedge and its growing appeal as a long-term investment. He noted that institutional demand is now shifting toward accumulation rather than selling.
This is evidenced by institutional FOMO (fear of missing out), particularly as Bitcoin approaches the $100K milestone.
For instance, Bitcoin mining firm Hut 8 recently announced plans to raise $500 Million to expand its reserves. This demonstrated confidence in the cryptocurrency’s long-term growth.
Additionally, data such as the Coinbase Premium Index shows sustained buying pressure from U.S. investors. That further reinforced the optimism among institutional players.
Is the Mt. Gox Bitcoin Transfer a Cause for Concern?
As Bitcoin’s rally continues, the now-defunct Mt. Gox exchange has sparked concerns by transferring over 24,000 BTC. That was worth approximately $2.5 Billion.
The transaction, recorded on December 5, was sent to an unidentified wallet with no prior transaction history. This marks Mt. Gox’s first Bitcoin movement since November 12. It coincided with ongoing discussions about creditor repayments.
The sizable transfer has raised alarms among market participants. They fear it could lead to sell-side pressure if creditors decide to liquidate their holdings. Historically, large movements from dormant wallets have been seen as bearish signals for Bitcoin’s price.
However, some experts argue that the market has already accounted for the potential impact of these repayments. Officials suggest the transfers are primarily internal. At the same time, this is coming right after Bitcoin surpassed the $100K milestone, as it has drawn heightened scrutiny.
Analysts caution that if Bitcoin drops below $100K, the risk of accelerated selling could intensify. That led to increased short-term market volatility.
Will Bullish Sentiment Continue to Dominate the Market?
Despite potential challenges, the Bitcoin market continues to exude bullish momentum. Many experts view the $100K milestone as beginning a larger upward trajectory.
Bitwise CIO Matt Hougan predicted that the BTC price will mature into a reliable store of value akin to gold. He anticipated that BTC would capture 50% of gold’s market capitalization. It was driven by increasing government and institutional adoption.
Market analysts have remained optimistic. The projections suggested a climb to $135,000 or even $159,000 before experiencing a significant correction. This positive outlook was bolstered by strong technical signals, such as a recently confirmed Golden Cross on Bitcoin’s daily chart.
The Golden Cross highlighted Bitcoin‘s strong upward momentum. It is a bullish signal where the short-term moving average rises above the long-term moving average.
Bitcoin price has traded well above its 20-day and 50-day moving averages. Moreover, the 200-day EMA favored the bulls over an extended period.
However, momentum indicators like the MACD and AO histogram reflect a slowdown. Moving ahead, the CMF reading at 0.15 suggested a dip in money inflow, although it remains positive.
On the other hand, the Relative Strength Index (RSI) on the daily chart offers reassurance. Previously, in overbought territory, the RSI cooled to 64. That signaled room for further price consolidation or another potential upward surge.
The BTC price may encounter short-term resistance as traders take profits. In contrast, the broader sentiment remained optimistic.
Critical support was positioned at $96,500. Conversely, $104,000 has served as a potential short-term resistance level. It could temporarily cap upward momentum.
Disclaimer
In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
