Bitcoin (BTC) Price: Momentum Builds as Price Discovery Continues Above $107K

TLDR

• Bitcoin reached a new all-time high of $107,777, showing strong momentum in recent trading
• Peter Brandt has set a price target of $125,000 for Bitcoin amid increased institutional demand
• US Spot Bitcoin ETF saw significant inflows of $636.9 million on December 16, with BlackRock’s IBIT leading
• Donald Trump’s recent supportive statements about making the US a crypto capital and potential BTC strategic reserve have influenced market sentiment
• Bitcoin whales have increased their holdings substantially since Trump’s election victory, indicating strong institutional confidence

Bitcoin has marked another milestone in its history, pushing past $107,000 to establish a new all-time high of $107,777. The digital asset continues to demonstrate robust market strength, backed by growing institutional demand and increased activity from large holders known as “whales.”

The latest price action comes amid substantial inflows into US Spot Bitcoin ETFs, with data from Farside Investors showing $636.9 million in new investments on December 16 alone. BlackRock’s IBIT product has emerged as the leading contributor to these inflows, highlighting Wall Street’s growing appetite for Bitcoin exposure.

Market data reveals a clear trend of accumulation by institutional players. Bitcoin OTC desks have reported their highest monthly balance decline so far in 2024, with a decrease of 40,000 BTC since November 20. This reduction in available supply suggests strong buying pressure from large investors.

Veteran trader Peter Brandt has shared his analysis, setting a price target of $125,000 for Bitcoin. Brandt’s projection, supported by technical analysis, adds to the growing chorus of positive market sentiment. The trader emphasized Bitcoin’s unique position in the cryptocurrency market, stating that “everything else is a pretender.”

Recent political developments have also influenced market dynamics. Donald Trump’s statements about making the United States a “crypto capital” and his suggestions about Bitcoin becoming a strategic reserve have resonated with market participants. These comments have coincided with increased whale activity, as noted by crypto market analyst Ali Martinez.

Technical indicators support the current market structure. The hourly MACD (Moving Average Convergence Divergence) shows momentum in the bullish zone, while the Relative Strength Index (RSI) maintains position above the 50 level, indicating sustained buying pressure.

Bitcoin Price on CoinGecko

The market has established key support levels at $105,000 and $103,000, with resistance points identified at $107,500 and $112,000. Trading volume has seen a 25% increase to $79 billion, demonstrating active market participation across various trading pairs.

Futures market data from CoinGlass shows a 2% rise in Open Interest, suggesting traders are maintaining their positions despite the price appreciation. This metric often indicates market participants’ confidence in the current trend.

Bitcoin’s monthly performance shows an 18% gain, reflecting steady accumulation rather than speculative trading. The gradual nature of this advance has contributed to market stability and reduced volatility compared to previous rallies.

Data from CryptoQuant points to a supply-demand imbalance favoring higher prices. The firm’s head of research, Julio Moreno, has documented the declining balances on OTC desks, traditionally used by institutional investors for large transactions.

Demand outpacing supply has pushed Bitcoin towards new highs of $106k currently.

For example, Bitcoin OTC desks are seeing their largest monthly balance decline so far this year, -25k Bitcoin, as demand continues to grow.

Additionally, their balance has fallen by 40k Bitcoin… pic.twitter.com/ae8aEHca8n

— Julio Moreno (@jjcmoreno) December 16, 2024

The presence of a bullish trend line on the hourly chart provides technical support near the $105,000 level. This pattern has helped maintain the upward trajectory during minor price corrections.

Current market conditions show Bitcoin trading above both the $104,000 price point and the 100-hour Simple Moving Average, technical indicators that traders use to gauge market health.

The asset has shown resilience during recent retracements, with buyers stepping in at the 23.6% Fibonacci retracement level from the recent swing low of $99,251 to the all-time high.

Short-term price action suggests potential resistance near $107,200, with the next major hurdle at $107,750. A breakthrough above these levels could open the path to test the $108,000 mark.

Recent data indicates the number of Bitcoin whales has increased markedly since Donald Trump’s election victory, demonstrating growing confidence among large-scale investors.