Bitcoin (BTC) Price Prediction: Golden Cross Sparks FOMO as BTC Reaches a New ATH Today

On the daily chart, Bitcoin's breakout above the 100-day and 200-day moving averages has solidified its bullish trajectory.

Bitcoin’s price soared to a new all-time high on Monday, continuing its relentless rally amid bullish technical signals and strong buying interest from large investors. As the world’s leading cryptocurrency approached the highly anticipated $100,000 milestone, key metrics and on-chain data provide insights into the market dynamics and what to expect next.

1- Bitcoin Technical Analysis: Golden Cross Sparks FOMO

On the daily chart, Bitcoin’s breakout above the 100-day and 200-day moving averages has solidified its bullish trajectory. The recent formation of a Golden Cross—where the 100-day moving average crosses above the 200-day moving average—has sparked fear of missing out (FOMO) among investors.

This technical indicator signals a long-term bullish trend, typically indicating sustained buying pressure and optimism in the market. As a result, FOMO has gripped investors, leading to a buying frenzy and pushing Bitcoin price to new highs.

However, experts caution that this rapid ascent may trigger a corrective retracement. Fibonacci retracement levels between $74K and $70K are seen as critical support zones for profit-taking and re-entry opportunities. Meanwhile, short-term consolidation is expected near $90K as Bitcoin tests the upper boundary of its bullish price channel.

2- Whale Activity and Market Sentiment

Whale Transactions

Recent data from Arkham’s on-chain analytics reveals intensified whale activity. Notable transactions include:

At 09:05 UTC, an unknown wallet moved 1,000 BTC ($74 million) from Coinbase.

Later, another unknown wallet transferred 2,000 BTC ($148 million) from Binance.

Finally, an on-chain observer noted a massive over-the-counter (OTC) trade involving 10,000 BTC (around $740 million) being sold in a single transaction.

These large transactions, especially from exchanges, indicate that whales or institutions are actively shifting their crypto holdings. While the precise nature of these movements is unknown, they suggest substantial buying and selling activity in the market.

Miners Position and Selling Pressure

On-chain analysis shows that miners—key holders of Bitcoin supply—have increased selling activity. The Miners Position Index (MPI) has surged past the critical level of 2, signaling intensified selling pressure.

This metric measures the realized net change in miner positions, indicating their selling or hodling behavior. Higher MPI values typically coincide with miner selling activity, which could lead to short-term corrections.

However, despite the selling pressure, the market’s strong buy-side support continues to absorb the selling pressure, maintaining the bullish trend.

3- As Bitcoin Price Reaches A New ATH Today, What's NEXT?

Will Bitcoin Hit $100K?

As Bitcoin approaches the $100K milestone, bullish options bets on platforms like Deribit showcase strong market confidence. Call options for December 31 are heavily concentrated at the $100,000 strike price, indicating bullish sentiment among options traders.

However, analysts warn that much of the good news is already priced in. A potential market breather or minor correction could pave the way for more sustainable growth in 2022.

Risks and Considerations

While Bitcoin’s fundamentals remain strong, external factors such as regulatory uncertainties and macroeconomic shifts could influence its trajectory. Investors are advised to approach with caution, avoiding impulsive decisions driven by FOMO.

Bitcoin’s historic ATH marks a significant milestone, fueled by favorable macroeconomic conditions, technical indicators, and whale activity. As the crypto market evolves, Bitcoin’s dominance and influence continue to grow. While the path to $100K seems plausible, potential corrections could provide strategic entry points for investors.