Bitcoin (BTC) Price Inches Closer to Six Figures Amid Market Volatility

Bitcoin price was closing in on the $100,000 mark, fueling speculation of a massive breakout. After weeks of slow price movement, BTC/USD reached $98,330 on Bitstamp.

Bitcoin price was seen edging closer to the $100,000 mark on Wednesday, firing up speculation of a breakout. After enduring weeks of low volatility, BTC/USD enjoyed a much-needed rally, hitting $98,330 on Bitstamp.

The latest boost arrived as U.S. macro data showed initial jobless claims jumping to 219,000, overshooting the forecast by 4,000. The figures hinted at weakness in the labor market.

This raised speculation that the Federal Reserve might struggle to sustain higher interest rates for an extended period. However, CME Group’s FedWatch Tool showed zero probability of a rate cut at the next March meeting, leaving traders in limbo.

Popular trader Patric H highlighted the importance of flipping $100,000 into support for Bitcoin’s next leg up in his analysis, which identified two descending trendlines that BTC/USD must breach to confirm a bullish continuation.

Meanwhile, fellow trader Roman described Bitcoin’s pivot point at $98,400. If breached, this could lead to an additional $10,000 rise. “Break 98.4K, and my guess is 108K is next,” Roman wrote on X, also noting decreasing volume trends that hinted at an incoming breakout.

Bitcoin price faces $77K safety net — How low can it go?

Despite the bullish momentum, some analysts cautioned that a major correction could still unfold. Ki Young Ju, a leading crypto analyst, posted an X on BTC, arguing that even a 30% drop in Bitcoin price from an ATH of $110,000 would not indicate a bear market.

According to his Bitcoin investor cost basis data, a dip to $77,000 could serve as a major support level, preventing a larger downturn moving forward.

This would mean that even with a deep pullback, BTC price would still be above the previous cycle’s peak, keeping the long-term trend bullish.

Adding to the optimism, on-chain data showed that whales were aggressively accumulating BTC. CryptoQuant reported that over 28,000 BTC flowed into accumulation wallets recently.

The move is typically linked to institutional buyers and long-term holders. Historically, such whale accumulation has preceded major Bitcoin breakouts, reinforcing the notion that the bull market remains intact.

Gold hits $20 Trillion market cap — Can Bitcoin catch up?

In a reflection of the broader market, Bitcoin’s price action has mirrored traditional risk assets, with both gold and the S&P 500 hitting new all-time highs this week.

Gold’s market cap crossed $20 Trillion for the first time in history, a milestone that caught the attention of investors. However, BTC proponents were largely unfazed.

Highlighting that gold investors doubled their money in five years, network economist Timothy Peterson noted that Bitcoin price has also doubled every 16 months, on average.

This comparison sparked a fresh debate over whether Bitcoin could eventually replace gold as the ultimate store of value, with BTC’s scarcity and digital nature continuing to attract long-term investors seeking higher returns.

Bitcoin price forecast: What comes next?

Despite short-term fluctuations, analysts remained bullish on Bitcoin’s long-term trajectory. CryptoQuant analyst Timo Oinonen noted that BTC/USD has only enjoyed a 60% gain since the April 2024 block subsidy halving, suggesting more upside potential ahead.

Oinonen anticipates that Bitcoin price will follow a familiar post-halving cycle, which includes a May sell-off, sideways summer movement, and a bullish run in Q4.

This pattern has played out consistently in 2013, 2016, 2017, 2020, 2021, 2023, and 2024, making it a well-documented trend in Bitcoin’s price history. While short-term corrections remain a possibility, the long-term outlook for Bitcoin remains strongly bullish.