- Bitcoin entered a consolidation phase after it surged to $93,400 this week.
- Analysts are split on whether Bitcoin will break $100K or face a major correction.
- Ethereum remains 36% below its 2021 all-time high, with the altcoin season yet to materialize.
After a streak of giant green candles, the bull run in Bitcoin is finally cooling off, with no immediate signs that Bitcoin is ready to break the much-awaited $100K level.
Two days ago, Bitcoin peaked at $93,400 after staging a 40% gain from its November low of $66,800. This upward movement also boosted altcoins like Ethereum, which surged to $3,444, though it remains significantly below its all-time high.
While many in the crypto community anticipate Bitcoin maintaining momentum toward $100,000 and becoming a six-figure asset, it has instead dipped to $86,682 since crossing $90K, entering a consolidation phase.
Now, analysts are divided on Bitcoin’s next move, whether it will break into $100K or face a major correction that could sink its price back.
Is It Still a Good Time to Buy Bitcoin? A Trader’s Perspective
In a recent analysis , Santiment highlighted the significant social media activity following Bitcoin’s surge to an all-time high of $93,490. The analysis reveals intensified speculation for $100,000+ Bitcoin as it crossed key levels.
Santiment advises market participants to consider a “counter-trade” approach—exercising caution during high social media FOMO (fear of missing out) and potentially buying when public sentiment leans toward doubt in Bitcoin’s upward momentum. This strategy leverages the common tendency for the market to move in the opposite direction of the popular market sentiment.
Essentially, this analysis serves as a warning for those seeking short-term profits from Bitcoin, as they may be disappointed.
Is It Still a Good Time to Buy Bitcoin? A Holder’s Perspective
However, on a longer horizon, the broader sentiment, even among industry leaders, suggests further gains for Bitcoin to as high as $500,000.
In a note to investors on Tuesday, Bitwise CIO Matt Hougan believes Bitcoin is still in its early stages. Despite the recent price surge, Hougan suggests Bitcoin may not reach maturity as a store of value until it reaches $500,000 per coin.
Hougan argues that for Bitcoin to mature, it needs broader adoption by central banks and institutions. The $500,000 target is based on Bitcoin potentially capturing 50% of gold’s $17 trillion market.
Matthew Sigel, Head of Digital Asset Research at VanEck, has shared a similar sentiment. He argues that Bitcoin’s rally is just beginning and predicts it could reach $180,000 by the end of next year.
Ethereum Yet to Break ATH: Is It a Good Time to Buy?
At the same time, while Bitcoin is trading at all-time highs, Ethereum , its closest rival, is trading 36% below its 2021 all-time high. Many attribute the disparity to the observation that the altcoin season has yet to materialize. Bitcoin typically sets its all-time high first, then altcoins like ETH later catch up.
According to CoinMarketCap, the altcoin season index is currently at 38/100, meaning it is still the Bitcoin season, and altcoins like ETH still have promising upsides.
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