Bitcoin breaks through $60,000, how far is it from the high of $100,000?

As cliché as it sounds, it’s “another day, another new high for Bitcoin”, after a gain of more than 5% in the past few hours, the world’s largest cryptocurrency has broken the long-awaited $60,000 mark, adding to the gains in 2021 once again as the crypto space continues to grow.

As expected, Bitcoin’s move above $60,000 was welcomed and celebrated by many in the community, especially as Bitcoin’s market cap recently surpassed $1 trillion again.

The size and speed of Bitcoin’s price moves have caught many by surprise, especially as the cryptocurrency has been stuck in a range of $47,000 to $54,000 for the past two to three weeks.

Amazingly, Bitcoin’s latest high comes a year after the dreaded Bitcoin Black Friday (“312”), which saw Bitcoin plummet to as low as $4,000 last year. Since then, Bitcoin has been on the rise, and as the market has surged, so has the price of Bitcoin.

Notably, Bitcoin’s move above $50,000 and subsequently above $55,000 was facilitated by a number of important developments, including MicroStrategy’s decision to purchase more Bitcoin and issue $600 million worth of senior convertible notes.

Beneficial developments like this are undoubtedly positive, and on-chain metrics have also contributed to Bitcoin’s bull run over the past few weeks and even months.

Meanwhile, the supply of Bitcoin on cryptocurrency exchanges continues to decline, remaining in line with levels seen in early December, when the price of Bitcoin was just over $16,000, before the start of the Bitcoin bull run.

But in less than a month, its price has surged past its 2017 high, doubling its value, and as supply continues to decline, the cryptocurrency is expected to appreciate further in the short term.

The fact that until a few days ago, Bitcoin’s realized profits or losses had not yet peaked means that many holders have not yet sold their holdings at a significant profit . This also suggests that, at least in the short term, these holders are expected to further drive Bitcoin prices higher.

Additionally, the number of whale transactions is also on the rise , something that Santiment also recently highlighted.

However, there are some bearish signs to watch out for here. Take Bitcoin’s weighted social sentiment indicator, for example, which was at its lowest level in five months until a few hours ago, even as the price of Bitcoin pushed higher and broke through its previous high of $58,500.

Based on all these findings, it is evident that while Bitcoin’s recent trajectory has been predominantly bullish (as evidenced by its price action), some bearish signs can be found on its chart. Therefore, a significant move in either direction would not be unexpected.

Then again, this may be a fruitless discussion, after all, we have seen recent examples of Bitcoin rising exponentially without any impact from on-chain metrics, perhaps, and Bitcoin price movements only require a Twitter update to occur.

Now, the important question is, how long do we have before the expected drop from the highs of $100,000 hits? (Blockchain Knights)