Why is the price of Bitcoin higher today?

Following a 9% increase from its immediate support at $95,000, the price of Bitcoin (BTC) broke through its illusive $100,000 mark. As another phase of price discovery, or "Santa rally," begins to take shape before the end of 2024, it hit a new all-time high of $104,630 on December 5.

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After former SEC commissioner Paul Atkins was named SEC head by Donald Trump, the six-figure number was reached, and spot Bitcoin ETFs saw yet another huge volume influx of $556.8 million.

Demand for bitcoin has increased for 30 days since 2020.

The desire from individual investors is one of the main factors driving the current boom in Bitcoin. Retail investors' 30-day demand has hit a new all-time high, according to Darkfost, a verified analyst on CryptoQuant.

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The trading volume size by $0 to $10,000 has surpassed its previous all-time high level from 2020 to reach a new all-time high, as the chart shows. Such retail involvement levels, according to the expert, could indicate a possible local top, but he also said,

"It also highlights increasing market engagement, which can generate long-term positive momentum when paired with institutional interest."

Similarly, since the Coinbase premium index has maintained buying pressure throughout November and the first part of December, demand from US investors keeps rising.

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Coinbase has been under buying pressure for the past five weeks, which is the longest run since March 2024.

Related: Analyst: Bitcoin is "memetic" and won't be below $100K for very long

Bitcoin's "ceiling price" has reached new heights.

The CEO of CryptoQuant, Ki-Young Ju, stated that new funding is driving Bitcoin after it broke the $100,000 mark, causing its peak price to rise from $129,000 to $146,000 in just 30 days.
The price at which Bitcoin will technically be overpriced after taking into account current market demand is known as the ceiling price, and it is determined by the realised and market caps. Given this, Young-Ju wrote in an X post,

"At $102K, it is by no means a bubble—a 43% increase would be necessary to reach the level commonly regarded as a bubble."

The primary message conveyed by the aforementioned comment is that, even if Bitcoin has reached new all-time highs, it is still in a price discovery phase. To clear out overly leveraged bets in the market, mysterious Bitcoin dealer Edward Morra hinted to a correction as early as this week. The trader cautioned about possible short transactions and asked the general public of investors to "get ready to buy the dip."

The Fibonacci extension setup indicates that $105,000 and $111,000 are Bitcoin's immediate targets. Before a significant correction occurs, prices may move a little higher when the relative strength index (RSI) is reset.

Related: As Bitcoin hits $104K, its dominance returns to 57%

There is no investment advice or recommendation in this article. Every trading and investment decision carries some risk, so readers should do their own research before making a choice.

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