Bitcoin Price Prediction: Why BTC Could Rally to $110k

Highlights:

• Bitcoin trading around the $100,407.74 support
• A rally off this support could push Bitcoin to $110k soon
• Multiple macro factors could push Bitcoin off $100,407.74 support

Bitcoin is in the green today after a significant correction at the start of the week. In the last 24 hours, Bitcoin has gained by 2.54% to trade at $100,616. Trading volumes shrunk during the same period. They are down by 16.96% to stand at $79.83 billion.

This is an indicator that those who hold Bitcoin are not actively trading even as the price crosses the $100k price level for the fourth time since December 5. This could be an indicator of the rising bullish sentiment around Bitcoin, one that could see it rocket to new highs in the short term. Bitcoin’s potential is already evident in its price chart.

Technical Analysis – Bitcoin Price Establishes Key Support Above $100k

From the charts, what Bitcoin has been experiencing since the first time it pushed through $100k are price spikes. However, the price has slowly been consolidating, and Bitcoin has now formed a clear support level at $100,407.74.

The support is quite strong and Bitcoin has bounced off it multiple times within the day so far. If the support holds and Bitcoin bulls gain momentum, the key level to watch would be Bitcoin’s recent all-time high of $104,055.83. If the $104,055.83 high is broken, then Bitcoin could easily rally to $110k in the short term.

On the other hand, if bears take control and push Bitcoin through the $100,407.72 support, then a correction to around $94,490.05, now a key weekly support level, could follow. The other scenario is where the $100,407.72 support, but bulls lack the momentum for a breakout intraday. In such a scenario, Bitcoin could consolidate between the $100,407.72 support and the $104,055.83 high, now resistance in the short term. This could then be followed by a rally once the market garners enough momentum.

Of these three scenarios, the odds are high that Bitcoin could either consolidate intra-day or head to a massive bullish breakout. More odds favour a bullish breakout, though, as a lot is happening in the market that could trigger such a rally.

Institutional FOMO Is Building Up

Institutions are increasingly looking to add Bitcoin to their balance sheets. They are following MicroStrategy’s lead, with 60 listed companies now having Bitcoin in their balance sheets. Even the blue chips are increasingly considering the idea. Microsoft’s board recently voted on Bitcoin. While they rejected the addition of Bitcoin to the balance sheet, the fact that they even considered it points to the growing urge to add Bitcoin to company balance sheets.

MicroStrategy has acquired 21,550 BTC for ~$2.1 billion at ~$98,783 per #bitcoin and has achieved BTC Yield of 43.2% QTD and 68.7% YTD. As of 12/8/2024, we hodl 423,650 $BTC acquired for ~$25.6 billion at ~$60,324 per bitcoin. $MSTR https://t.co/8r7bFqMFof

— Michael Saylor⚡️ (@saylor) December 9, 2024

Already others like Amazon are having similar considerations, and there is speculation that Apple could follow the same route. If a majority of the S&P 500 turn 5% of their reserves into Bitcoin, it could have a major impact on Bitcoin. This is a clear rationale that not only is the current Bitcoin support above $100k likely to hold but Bitcoin could also be headed to much higher prices.

The Political Climate Favors Bitcoin

The rising demand from institutions could also be boosted by the fact that policies are set to get better for Bitcoin. The incoming Trump administration is pro-crypto and there is strong talk of the formation of a Bitcoin reserve. The incoming administration has already picked a pro-crypto SEC chairman.

“I am confident that it is going to hit $1 million.” – @EricTrump on #Bitcoinpic.twitter.com/d0ocjQKihl

— Michael Saylor⚡️ (@saylor) December 10, 2024

Additionally, Donald’s Trump declaration for expedited regulatory approval for anyone with $1 billion to invest could trigger a surge in Bitcoin-related companies setting up shop in the US. This could give Bitcoin the push to rally to $110k or higher, in the short term.