Bitcoin’s (BTC) price breached its elusive $100,000 level after a 9% rally from its immediate support at $95,000. It reached a new all-time high of $104,630 on Dec. 5, as another period of price discovery or “Santa rally” takes shape before the end of 2024.
BTC ETF flow chart. Source: Farside.co.uk
The six-digit figure was achieved after Donald Trump announced the appointment of former SEC commissioner Paul Atkins as SEC chair, and spot BTC ETFs registered another massive volume inflow, with $556.8 million.
Bitcoin 30-day demand highest since 2020
One of the key positive catalysts of BTC’s current rally is the demand from retail investors. Darkfost, a verified analyst on CryptoQuant, highlighted that the 30-day demand from retail investors has reached a new all-time high.
Bitcoin 30-day demand from retail investors. Source: CryptoQuant
As illustrated in the chart, the trading volume size by $0 to $10,000 has reached a new all-time high, surpassing its previous all-time high level from 2020. The analyst said that such levels of retail participation may signal a potential local top, but he added,
“It also highlights growing market engagement, which, when combined with institutional interest, can create sustained positive momentum.”
Likewise, demand from US investors continues to increase as the Coinbase premium index has sustained buying pressure throughout November and the beginning of December.
Bitcoin Coinbase premium index. Source: CryptoQuant
The last five weeks of buying pressure on Coinbase is its longest streak since March 2024.
Related: Bitcoin is ‘memetic’ and won’t stay down around $100K for long: Analyst
Bitcoin “ceiling price” at fresh highs
After BTC breached $100,000, Ki-Young Ju, CEO of CryptoQuant, said that fresh capital is fueling Bitcoin, pushing its ceiling price from $129,000 to $146,000 in 30 days.
Bitcoin ceiling price chart. Source: CryptoQuant
The ceiling price of Bitcoin is derived from its realized cap and market cap, and it is defined as the value where it will be technically overvalued after incorporating present market demand. In light of that, Young- Ju stated in an X post,
“At $102K, it’s far from a bubble—it would need a 43% surge to hit the threshold often considered a bubble.”
The main narrative communicated by the above statement is that BTC remains in a price discovery period despite breaking new all-time highs. However, Edward Morra, an anonymous Bitcoin trader, opened the possibility of correction as early as this week to flush out overleveraged trades in the market. The trader advised against potential short trades, asking the wider investor class to “prepare to buy the dip.”
Bitcoin 12-hour chart. Source: Cointelegraph/TradingView
Based on the Fibonacci extension setup, Bitcoin’s immediate targets are at $105,000 and $111,000. With the relative strength index (RSI) undergoing a reset, prices can push slightly higher before any sharp correction takes place.
Related: Bitcoin dominance bounces back to 57% as BTC punches to $104K
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
