By Michael Scott
CryptoQuant chief Ki Young Ju urges investors to overcome the temptations to dispose of Bitcoin.
The analytics firm founder observes that while Bitcoin finally overcame resistance to attain a six-figure price, investors should not cash in for profit. Instead, surpassing $100K to set a new peak at $103,900 is just the beginning.
The experienced analyst considers the $100K just one of the several psychological milestones. The announcement emerged as bulls could not defend the $100K price range. As such, Bitcoin dipped to settle below this key resistance level.
Before this critical milestone, several market observers anticipated the market would witness a massive downtrend after BTC breached the $100K threshold. The analysts convinced investors could prefer profit-taking as BTC breached the $100K mark.
Nonetheless, among them Young Ju, several analysts believe selling BTC at this juncture could turn into a regrettable and costly move.
Young Ju considers Bitcoin to be still in the price discovery phase. The analyst adds that exiting the market at the infancy stage is unwise.
Regret in Exiting Bitcoin Long
The CryptoQuant executive reflects on a personal incident to illustrate the errors of early exit. He recalls four years ago when BTC hit $10,000 to end a multi-month consolidation.
Young Ju laments the overwhelming excitement that misled him to an early exit. Since then, Bitcoin has navigated an even more remarkable trajectory, never to tumble below $10,000.
Young Ju revealed opening a generational long position on BTC at a $17,000 price. He planned to hold it for several years before passing it to the grandson. Nevertheless, he would exit early as BTC was still within the price discovery phase.
Reflecting on the incident, he admits regret for the hasty closure of the position. He observed that it was proof that the experienced traders were vulnerable to impulsive decisions despite their insights.
The CryptoQuant head deployed the reflection to spotlight the key lesson learned over the period the BTC price discovery stage recurs every four years. The awareness of this error informs him to urge the crypto community to exercise caution and consider the bigger picture. He advised the Bitcoin holders against the tendency to react quickly, particularly during the market phases.
Bitcoin Beyond $100K Target
The optimistic outlook conveyed by Young Ju is echoed by industry experts who consider the BTC $100K milestone the onset of further gains. Among them is Bitwise chief investment executive Matt Hougan, who is convinced that the valid target of Bitcoin is $500K.
Hougan considers the $500,000 level an opportunity for the BTC to quickly evolve into the desired maturity as a store of value rivaling gold. He anticipates Bitcoin will eventually realize half of the gold market value. The path ahead will leverage government and institutional investment as catalysts to the $500K.
Market analyst Ali Martinez considers that Bitcoin could chart higher to $138,000 in the short term. The analyst considers $150,000 to be possible before a retreat. He adds that corrections could drag Bitcoin down to the $96K – $105K range or plunge to the $83K and $72K support levels.
Institutional Adoption Key to Bitcoin Path Beyond $100K
Market observers consider institutional investors key to driving the Bitcoin price further. They cite that the fear of missing out on further price upticks is prompting many to embrace Bitcoin.
Such is demonstrated in a recent disclosure by listed Bitcoin miner Hut 8 of its ambitions to raise $0.5 billion to acquire Bitcoin as its strategic reserve asset.
The emergence of institutional FOMO propelling the prices of Bitcoin further is underscored by buying pressure. Recent data shows US investors are sustaining the buying pressure per the Coinbase Premium index.
The most significant factor that could trigger the institutional interest further is the US government establishing a Bitcoin stockpile. The potential of this campaign promise by Donald Trump coming to fruition could trigger the Bitcoin rush akin to the Gold rush.