Bitcoin Price Hits New ATH: Is $120K the Next Target in 2024?

Bitcoin has shattered the $100,000 barrier for the first time. The leading cryptocurrency has been on an impressive rally, gaining 7% in the last three days and another 4% today. After hitting a peak of $104,630, it settled at $101,132—cementing its position in the six-figure club.

This is a symbol of renewed hope for traders and investors who have been eagerly waiting for the bull cycle to roar back to life.

What’s next from here?

A Major Psychological Barrier Crossed

The $100,000 level has long been a critical psychological resistance for Bitcoin. Earlier today, large buying volumes drove BTC to break through this barrier. This influx of capital lifted the price significantly, with traders watching closely to see if the momentum will hold.

The Fear and Greed Index, a key market sentiment indicator, hit 84 today, reflecting strong buying interest. However, Bitcoin now faces the challenge of sustaining this level without support from key moving averages in this price range.

How High Can Bitcoin Go?

Bitcoin’s technical indicators highlight both opportunities and risks:

Trading Volume: Bitcoin’s 24-hour trading volume surged by 35%, much of it in the past hour. BTC trading now nears $100 billion, pushing the total crypto market capitalization to $3.69 trillion, a 4.97% increase.

RSI (Relative Strength Index): At 76.41, the RSI indicates strong bullish momentum but warns that the market is approaching overbought territory, which may lead to a temporary cooldown.

ADX (Average Directional Index): Currently at 17.57, the ADX suggests a weak trend, though it shows signs of strengthening.

Bitcoin’s dominance over the crypto market stands at 55.5%, slightly lower than usual, suggesting growing strength in altcoins.

The Trump Effect

Experts believe favorable political developments in the U.S. are a key driver behind Bitcoin’s rally. Pro-crypto President Donald Trump’s recent election victory has brought renewed optimism to the market.

His administration’s push to bring crypto-friendly officials into leadership roles has reassured the community, driving prices higher across Bitcoin and altcoins.

Are you curious to know if the Bitcoin price will hit $120,000 this 2024? Read CoinPedia’s Bitcoin Price Prediction to explore the long-term possibilities! Moreover, subscribe to us for the latest crypto updates!

Will Bitcoin Reach $120,000 in 2024?

The big question now is whether Bitcoin can extend its rally to $120,000. While the current momentum is promising, caution is necessary. The RSI shows that the market is nearing overbought conditions, which often precede pullbacks.

Moreover, crossing $100K has already triggered significant liquidations. Over $130 million worth of positions were liquidated in the past hour alone, with most of it coming from shorts. Markets tend to retest key support levels after such rallies, and if Bitcoin fails to establish support above $100K, a sharp correction could follow.

Investors should also watch for inflows into Bitcoin ETFs, which could further impact price movements.

All Eyes on Altcoins

Bitcoin’s success is likely to have a ripple effect on the altcoin market. With BTC maintaining its position above $100K, altcoins are expected to gain momentum as well.

However, the current wave of confidence and greed in the market should be approached with caution. Conditions like these often set the stage for corrections, and staying alert is essential.