Bitcoin Price Breaks $100,000 — What’s Next?

Key Takeaways

• Bitcoin (BTC) reached a new all-time high price on Dec. 5.
• The parabola that contains the increase since August is intact.
• How much further above $100,000 will BTC increase?

The Bitcoin price increased by 37% in November, reaching an initial all-time high price of $99,800 on Nov. 22.

However, it fell in the month’s final week and continued its downtrend at the start of December.

This all changed on Dec. 4, when Bitcoin began to recover and approached its all-time high, breaking it the next day.

Since Bitcoin finally broke $100,000, it could accelerate even faster toward its next targets. Let’s analyze the price action and determine where the price could go next.

Bitcoin’s All-Time High

The daily time frame chart shows that the BTC price has increased alongside a parabolic ascending support trend line since Aug. 5.

Initially, an ascending parallel channel (black) contained the upward movement. However, after the BTC price broke out in November, the increase became parabolic, leading to a then Bitcoin all-time high of $99,800.

While the BTC price fell afterward, creating a lower high on Nov. 29, it has regained its footing since and reached a new all-time high of $104,088 on Dec. 5.

Technical indicators are mixed. Before the decline, the Relative Strength Index (RSI) generated a bearish divergence (green). However, it followed that with a hidden bullish divergence (yellow), a sign the decline was over.

However, the Moving Average Convergence/Divergence (MACD) has made a bearish cross (black circle) and is falling, a sign of a bearish trend.

Therefore, the daily time frame for BTC price action is bullish, while indicator readings give mixed signs.

What Lies Ahead?

The wave count suggests the parabolic increase is a series of 1-2/1-2 wave formations. The wave, sub-wave, and minor sub-wave counts are shown in white, black, and yellow, respectively.

If the count is accurate, BTC has either completed sub-wave four of wave three or will do so soon.

In the bullish scenario, sub-wave four is over, and the BTC price has begun the fifth and final sub-wave, which can take it toward $110,920.

On the other hand, Bitcoin could fall to the parabolic support trend line near $90,000 if the price creates an A-B-C structure (yellow). This would complete sub-wave four, after which sub-wave five would begin with the same target.

This is the less likely scenario since it would entail that the all-time high breakout is only part of wave B.

New Highs

Despite stalling after its initial all-time high, the Bitcoin price has further room to grow.

According to the wave count, the Bitcoin price is in the final portion of an upward movement that started in September. A high of $110,920 is likely soon.