Bitcoin at $100K No Longer a Dream Believe Traders, but Blow-Off Top Warning in Near Term

QCP traders expect a run to $100,000 — nearly 10% higher than the current record of over $93,000 — in the coming months, with those gains flowing into altcoins in a mark of a general “alt season.”

Bitcoin (BTC) traders are now predicting a run to $100,000 as the new record high, up nearly 10% from the current all-time high of over $93,000, with those gains set to flow into altcoins, signaling the start of a broader "alt season."

Bitcoin's new all-time high is now in sight as the asset continues to rally swiftly in the wake of the U.S. midterm elections, which saw Republicans largely victorious in the House and Senate. Those gains, coupled with the pro-crypto stance of several winning candidates, have fueled optimism in the crypto market.

"Predictions of BTC at 100K aren't a pipedream anymore as the political and institutional stars start to align," traders at Singapore-based QCP Capital noted in a Telegram broadcast on Tuesday. "Despite having net ETF outflows last Thursday and Friday, BTC still looks relatively well supported and institutional adoption remains strong."

The bull run saw major bitcoin (BTC) backer MicroStrategy (MSTR) and Metaplanet both revealing fresh BTC purchases on Monday, with the former now holding 1.5% of the asset's total supply.

QCP traders expect a run to $100,000 — nearly 10% higher than the current record of over $93,000 — in the coming months, with those gains flowing into altcoins in a mark of a general "alt season."

"BTC's dominance is around 60% now and will probably need to be under 58% to signal the start of altcoin season. We anticipate pro-crypto policies from the Trump administration and more rate cuts. We won't be surprised to see altcoin season in full swing in the coming months," QCP traders noted.

Banks and traditional finance analysts have issued targets as high as $200,000 after Republican Donald Trump's victory in the November elections.

A retail sentiment gauge by U.S. bank JPMorgan rose to a record high of 4 earlier this week, suggesting renewed demand from smaller professional investors. The measure is designed to gauge the sentiment of retail investors toward cryptocurrencies, especially bitcoin, based on the activity in the family of BTC products, including spot ETFs.

However, not all are optimistic, with some expressing concerns about a near-term market top.

"We feel that the 'easy' part of the rally has been done and the next stage will be much trickier with more price choppiness and potential for drawdowns," Augustine Fan, head of insights at SOFA, told CoinDesk in a Telegram message. "Bitcoin dominance remains on a one-way trend higher reminiscent of the mega-cap dominance in SPX, and is not particularly desirable for this stage of the crypto ecosystem."

"We'll be looking for a potential blow-off top in the near term with market sentiment at highly frothy levels," Fan added.

A blow-off top is a chart pattern recognized in technical analysis that indicates a rapid and steep increase in the price of an asset, followed by an equally rapid decline.

In case of a blow off top, the former record high of around $69,000 could be tested again, with a classic bear market wick potentially extending up to lower $60,000, said CoinDesk's senior markets analyst Omkar Godbole.

Maksym Sakharov, co-founder of WeFi, mirrors the sentiment. "The upside volatility in the price of Bitcoin has slowed down since it crossed the $90,000 ATH range. The fact that the US Federal Reserve is no longer in a rush to cut interest rates moving forward has further forced investors to re-evaluate their bets on Bitcoin,” Sakharov said.

"Should the Fed continue to adopt a mildly hawkish stance toward the rate, the attractiveness of Bitcoin may decrease,” Sakharov added.