Bitcoin price today: $107,300
Bitcoin price is trading above $107,300 on Tuesday, after reaching a new high of $107,793 the previous day. Bitcoin’s recent rally has been fueled by companies like Microstragertgy and the Riot platform that have added more BTC to their holdings. The technical outlook suggests continued upside, with an expected price target of $119,500.
Bitcoin (BTC) price remains in the green, trading above $107,000 on Tuesday after reaching a record level of $107,793 the previous day. BTC's recent rally has been supported by companies such as MicroStragerty and Riot Platforms that have added BTC to their holdings. The technical outlook remains bullish and supports continued upside, with an expected price target of $119,500.
Bitcoin Rise Fueled by Corporate Demand
Bitcoin price reached an all-time high (ATH) of $107,793 earlier this week. This rise can be seen as a result of increased corporate demand for Bitcoin.
On Monday, Michael Sayor's MicroStrategy (MSTR) announced that the company had purchased an additional 15,350 BTC for approximately $1.5 billion, at an average price of $100,386 per BTC. MSTR currently holds 439,000 BTC, acquired for $27.1 billion at an average price of $61,725 per Bitcoin. This activity sparked a debate about Bitcoin in the cryptocurrency community, and it hit an all-time high of $107,793 on the day.
MicroStrategy acquired 15,350 BTC worth $1.5 billion, or approximately $100,386 each. #bitcoin And it achieved a BTC yield of 46.4% QTD and 72.4% YTD. As of December 15, 2024, we have 439,000 people $BTC It was acquired for about $27.1 billion at about $61,725 per Bitcoin. $MSTR https://t.co/SaWLNBVkrl
— Michael Saylor ⚡️ (@saylor) December 16, 2024
During the same period, Riot Platforms also announced that it added 667 BTC at an average price of $101,135 per BTC. Currently, Riot holds 17,429 BTC, worth $1.8 billion.
The additional proceeds from Riot's increased $594 million, 0.75% coupon convertible note issue resulted in the company acquiring 667 BTC at an average price of $101,135 per BTC. As a result, Riot increased its holdings to 17,429 BTC, which is now valued at $1.8 billion based on value. pic.twitter.com/t68Uy8nbHU
— Riot Platforms, Inc. (@RiotPlatforms) December 16, 2024
Apart from corporate demand, capital inflows from institutional investors are also supporting Bitcoin's rise. Bitcoin spot exchange-traded fund (ETF) data on Monday recorded inflows of $637.5 million, continuing consecutive positive inflows since November 27, according to Coinglass.
Total Bitcoin Spot ETF Net Inflows Chart. Source: Coinglass
“Bitcoin is entering escape velocity,” with growing demand at both the corporate and institutional level, Anthony Rousseau, head of brokerage solutions at Trade Nation, told FXStreet in an exclusive interview.
Rousseau explained that a real-time supply shock occurs as Bitcoin's fixed supply pushes up the price in response to a surge in demand.
“Many holders remain reluctant to sell at current levels, suggesting further upside potential towards the end of the year,” Rousseau said.
Bitcoin Magazine tweeted on Tuesday that a member of the European Parliament called for a strategic Bitcoin reserve and said “no to a digital euro.”
Despite strong demand and Bitcoin hitting new highs, traders need to remain cautious. Arkham intelligence data indicates that exchange MT funds have been suspended. Gox moved $172.54 million worth of funds on Monday. This money could later be sent to exchanges like Bitstamp, BitGo, and Kraken to repay creditors. If an exchange sells like this, it could create FUD (Fear, Uncertainty, and Doubt) among traders, leading to a decline in Bitcoin prices.
Bitcoin price prediction: focus on $119,500 mark
Bitcoin price reached a new high of $107,793 on Monday after rising more than 3% in the previous week. As of Tuesday, it was trading above $107,300.
If BTC continues its upward trend, the rally could extend to test a new ATH of $119,510. This level coincides with the 141.4% Fibonacci extension drawn from the November 4th low of $66,835 to the December 5th high of $104,088.
The relative strength index (RSI) on the daily chart is 70.93, above the overbought level of 70, indicating strong bullish momentum. However, traders should be cautious if the RSI falls below the overbought level, as the probability of a pullback increases. Additionally, the Moving Average Convergence Divergence (MACD) line on the daily chart showed a bullish crossover on Monday, suggesting upward momentum.
BTC/USDT daily chart
However, if BTC faces a pullback and closes below $100,000, the decline could extend to retest the $90,000 support level.
Frequently asked questions about Bitcoin, altcoins, and stablecoins
Bitcoin is the largest cryptocurrency by market capitalization and is a virtual currency designed to function as money. This form of payment is not controlled by any particular person, group, or entity and eliminates the need for third parties to participate during financial transactions.
An altcoin is any cryptocurrency other than Bitcoin, but some consider Ethereum to be a non-altcoin because it is these two cryptocurrencies that forks occur. If this is true, Litecoin would be the first altcoin to fork from the Bitcoin protocol and thus be an “improved” version of it.
A stablecoin is a cryptocurrency that is designed to have a stable price, and its value is backed by the reserves of the asset it represents. To achieve this, the value of one stablecoin is pegged to a commodity or financial instrument, such as the US dollar (USD), and its supply is regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off ramp for investors who wish to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally volatile.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the market capitalization of all cryptocurrencies combined. This clearly shows the interest in Bitcoin among investors. BTC's dominance typically occurs around bull markets, where investors turn to relatively stable, high-market-cap cryptocurrencies like Bitcoin. Decreasing BTC dominance usually means investors are moving their capital and profits to altcoins in search of higher returns, which usually causes an explosive rally in altcoins.
