Bitcoin Aims to Reach Record-Breaking Price of Over $100,000 per Coin Following Analyst’s Prediction of a New Daily Close High

Bitcoin Heads Back Toward $100,000 After Dec. 6 Flash Crash

As markets recovered from the recent flash crash on December 6, Bitcoin (BTC) made a notable comeback, heading back toward the $100,000 mark.

Market Volatility Increases

Data from Cointelegraph Markets Pro and TradingView showed that BTC price gains reached 2.7% on the day, indicating a slight recovery from the previous dip. However, market volatility edged higher after a brief cooling-off period, which followed a significant $10,000 drawdown over a single hourly candle.

Textbook Technical Analysis (TA) Principles Apply

Rekt Capital, a popular trader and analyst, shared his insights on X, summarizing that "despite tremendous volatility… Bitcoin is respecting textbook TA principles with a Daily Close followed by a retest of the top of the main triangular market structure." He added that the post-breakout retest was successful thus far.

Successful Post-Breakout Retest

An accompanying chart revealed a so-called ‘Darth Maul’ candle on daily timeframes, indicating both long and short traders were liquidated to the tune of $900 million over 24 hours. Despite this significant event, fellow trader Daan Crypto Trades remained unfazed, stating that "yesterday saw close to $4B in Open Interest wiped out from the market. This was on BTC alone. ETH saw close to $1.5B wiped out but held better in the end."

Normal Market Fluctuations

Daan Crypto Trades continued by noting that "these kind of flushes are pretty normal in a bull market and will happen more often. It’s the only way we keep going." This perspective highlights the natural fluctuations within the cryptocurrency market, especially during periods of significant growth.

Market Expectations: Fed Rate Cut Bets

The BTC price rebound was aided by cathartic United States macro data on the day. Nonfarm payrolls (NFP) numbers showed declining labor market strength, which led to an increase in market expectations of an interest rate cut from the Federal Reserve in December.

Increased Odds of a 0.25% Rate Cut

Data from CME Group’s FedWatch Tool put the odds of a 0.25% cut at nearly 89% at the time of writing, significantly higher than just a week prior (68%). This development contributed to the BTC price recovery.

Mixed Signals in Labor Market Data

The Kobeissi Letter acknowledged that "at the same time, September and October employment was revised higher by 56,000 jobs." However, they also pointed out that "the number of mixed signals in the labor market data is alarming. The labor market is weaker than it appears to be."

Investment Advice Disclaimer

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Additional Insights from Caleb Franzen

Caleb Franzen, creator of financial research resource Cubic Analytics, shared his thoughts on X, stating that "Bitcoin could have its highest daily close ever today." He emphasized that such occurrences are rare during bear markets but not uncommon in bull markets. This perspective highlights the resilience and growth potential of Bitcoin.

Market Outlook and Future Expectations

As market participants navigate this complex landscape, it is essential to remain informed about the latest developments and trends within the cryptocurrency space. The Markets Outlook newsletter offers critical insights to help readers identify investment opportunities, mitigate risks, and refine their trading strategies.

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