Bitcoin Taps $106,000, Consolidates At $104,000: Why Is BTC Going Up?
By Benzinga
Bitcoin (CRYPTO: BTC) has briefly crossed the $106,000 threshold during the Asian trading session before falling back below $104,000 before the New York open.
Market observers expect Bitcoin to continue to push up but are divided on how long the rally can last.
What Happened: Crypto trader Scient predicted in a post on X on Monday predicts a local top at $110,000 near the New Year, followed by a correction to the $80,000–$84,000 range.
He suggests the correction may bottom out around Donald Trump’s inauguration on Jan. 20.
Scient believes this consolidation could set the stage for a stronger parabolic rally post-inauguration, noting that such a setup would be a healthy pivot point. However, he warns that traders may misinterpret the event as a “sell-the-news” scenario, potentially leading to over-trading and unnecessary losses.
Also Read: Bitcoin’s Bull Run Gets A Boost From Whale Accumulators, But Retail Still The King In Ownership
In a comprehensive post analyzing the state of the market, crypto trader Cold Blooded Shiller provides broader context for Bitcoin’s current cycle and future outlook. He argues that the 8-month consolidation phase felt like a bear market to many but was actually a transitionary phase. The current cycle, marked by over 2 years of upward trending, has been unusually strong with shallow corrections compared to previous cycles.
The analyst notes several distinctive features of the current cycle:
- The longest continuation trend with drawdowns below 50%.
- Outperformance of Bitcoin versus altcoins with clear price action.
- Typical bull market pullbacks, like the 30% summer correction, unlike sharper selloffs of 2021.
Shiller predicts bullish momentum in 2025, with Bitcoin and altcoins benefiting from positive catalysts, including regulatory clarity and favourable political developments. While volatility will persist, aggressive selloffs are less likely as demand grows.
Price Action: Over the past 24 hours, Bitcoin is up 1.4%, trading at $103,944 at the time of writing.
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Image: Shutterstock
