Bitcoin 100K Sprint

Is Bitcoin on a $100K Sprint?

Worldwide – Bitcoin (BTC) is on a bull run after it regained the $50,000 mark on October 6, 2021. As of writing this, Bitcoin is trading above $60,000, according to CoinMarketCap. If this trend continues, BTC is expected to hit $100,000 in the next few months.

3 Reasons Behind Bitcoin’s Q4 Bull Run in 2021

October is called “Uptober” in the Bitcoin community for a reason. ByBit data shows that Bitcoin rallied 7 out of 9 times in October since 2013. Following its historical pattern, Bitcoin is up by over 40% this October.

Here are three major reasons why Bitcoin could reach $100k by the end of 2021 –

1.    Institutions Prefer Bitcoin

In its September 2021 report on digital asset investment products, CryptoCompare highlighted that Bitcoin-based investment products saw the highest participation among other assets. According to the report, Bitcoin-based products saw an inflow of $31.2 million per week in September 2021.

JP Morgan (NYSE: JPM) also confirmed that institutional investors are now considering Bitcoin over gold as an inflation hedge.

Such massive institutional inflow of capital is one of the factors driving Bitcoin’s gigantic price appreciation.

2.    Technical Indicators Confirm a Bullish Trend

If you look at the weekly price chart of Bitcoin, you will notice a Bull Pennant pattern. Bitcoin has been trading between well-defined patterns inside two converging trend lines followed by a 500% price pump.

It is expected that Bitcoin will break the pattern’s upper trend line and skyrocket to regain the length of the flagpole, previous trend line. If this happens, Bitcoin might reach the $100,000 mark as the last flagpole is nearly $50,000.

Historically, BTC’s move above the 20-week exponential moving average (EMA), coupled with rising volumes, has resulted in a bull run. Considering this, if Bitcoin moves above the 20-week EMA, it might touch a new all-time high in the coming months.

3.    HODL Sentiment Prevails

Data from CryptoQuant, a blockchain analytics firm, shows that BTC reserves held across all cryptocurrency exchanges have significantly declined since July 2021 and reached their lowest in October 2021. This indicates that traders are holding their Bitcoins instead of selling them on crypto exchanges.

What Experts Say on Bitcoin Rally?

Alessio Rastani, a prominent crypto analyst and trader, predicted that each Bitcoin would be worth $100,000 in the next few months.

While explaining his price analysis in a YouTube video, he cited the Elliott Wave Theory. This theory divides a Bull Run into five waves. Rastani believes the BTC market is in the final wave of the Bull Run that started in 2019. He says BTC will reach the top of this final wave in 2022.

Standard Chartered’s (LSE: STAN) research also predicts that BTC will hit $100,000 in late 2021 or early 2022.

SEC gives the green light to Bitcoin Futures ETF

On October 15, 2021, the Security Exchange Commission (SEC) gave a green signal to ProShares for launching their Bitcoin-linked exchange-traded funds (ETFs). This comes as a relief for investors who wish to get a relatively safe Bitcoin exposure.

SEC allowing ProShares to launch Bitcoin futures ETFs is seen as an encouraging sign for promoting Bitcoin adoption fueling its price to reach $60,300 on October 15.

Final Thoughts

Bitcoin is following its historical trend of gaining strong momentum in October. But this time, it seems there is no looking back before it reaches the $100,000 mark. The institutional capital inflow, experts’ opinions, technical indicators such as Bull Pennant, and SEC green signaling Bitcoin futures ETF – all indicate Bitcoin is on a sprint to reach a new all-time high of $100,000.

Bitcoin 100K Sprint

About Alberto Patterson

A London School of Journalism graduate, Alberto is an expert journalist on essential topics such as business, finance, global markets, and environmental concern. As a local activist and online publisher, he aims to provide readers in-depth discussion on specific topics that are necessary and will significantly affect our way of life. He is now a full-time contributor to The Bitgrum.

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