Bitcoin is once again testing the psychological barrier of $100,000, a critical price level that traders and investors are eagerly watching. Historically, it has taken Bitcoin several attempts to break through significant round numbers, and the $100K milestone is no exception.
The Challenge of Breaking Round Numbers
Round numbers, like $10,000, $50,000, and $100,000, hold substantial psychological weight in the financial markets. This is particularly true in the world of cryptocurrencies, where traders are often more emotionally influenced by price movements. When Bitcoin nears such key levels, many traders are hesitant, either waiting for confirmation or fearing a sell-off if the price fails to push through. This causes a build-up of resistance, making it difficult for Bitcoin to break through easily.
Traders also try to anticipate these price points and pre-position their orders, often adding to the difficulty of crossing these thresholds. As a result, the price of Bitcoin has often stalled at such levels before continuing upward.
Bitcoin’s Historical Struggles with Round Numbers
Analyzing Bitcoin’s past behavior reveals a consistent trend: it often takes between 15 and 30 attempts for Bitcoin to successfully surpass a round number. For example, when Bitcoin first closed above $10,000 in December 2017, it took multiple attempts before it broke through decisively. After reaching this price, Bitcoin entered a bear market and struggled to reclaim the $10,000 level until 2020.
Subsequent levels, like $20,000, $30,000, and $70,000, showed similar patterns of Bitcoin repeatedly coming within 2% of the target before finally breaking through. This trend has been a defining characteristic of Bitcoin’s price movements, where sustained attempts are often needed to push past these psychological barriers.
A Break from the Past: $80K and $90K
However, Bitcoin’s recent attempts to break through $80,000 and $90,000 were different. Following the U.S. election in 2020, Bitcoin swiftly surpassed these price levels in only a few attempts, showing much less resistance than previous milestones. This change in behavior may reflect the growing institutional interest in Bitcoin and a broader adoption of cryptocurrencies, which has reduced the traditional hesitancy that once stalled Bitcoin’s rise.
Is $100K Next?
With Bitcoin now closing in on the $100,000 mark, traders are questioning whether the cryptocurrency will follow the long-standing pattern of multiple failed attempts before breaking through. In late November 2024, Bitcoin closed twice within 2% of $100,000, yet the milestone remains elusive. The question remains: will Bitcoin break through this level on the third attempt, or will it take even more tries?
What Traders Can Expect
Given the historical patterns, Bitcoin may need several attempts to break past $100,000. Traders should be prepared for continued volatility as Bitcoin tests this critical price point. As Bitcoin moves closer to this psychological threshold, the market will be watching closely to see if the cryptocurrency can finally push past this barrier, potentially marking the next major milestone in its journey.
