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Bitcoin’s price surge continues, nearing its all-time high above $109,000, fueled by concerns over Japan’s escalating national debt. This situation mirrors a similar rise in gold prices, reaching $3,320 per ounce, its highest since May 12th. The rising yields on 30-year Japanese Government Bonds (JGBs), exceeding 3%, are unsettling global investors and contributing to market volatility.
Trading firm QCP Capital attributes Bitcoin’s recent gains to significant corporate accumulation, primarily by Strategy and Metaplanet. However, they caution that these entities might represent the last substantial buyers at the current price levels. A slowdown in their buying could trigger profit-taking and potentially reverse the upward trend.
Technical analysis reveals cause for concern. Multiple bearish divergences are appearing on Bitcoin’s relative strength index (RSI), indicating potential weakness despite the price increase. Popular trader Roman highlights three such divergences on daily timeframes, suggesting a retest of $101,000 before any further price movement, up or down. This aligns with a more conservative outlook on the market structure.
Despite these warnings, bullish predictions persist. Once all-time highs are surpassed, price targets range from $116,000 to a more extreme “blow-off top” at $128,000. Some analysts even predict prices as high as $220,000 or more in 2025.
However, analyst Aksel Kibar maintains a bullish long-term perspective, emphasizing the trend’s continued strength and projecting a $137,000 target. This resilience is remarkable considering the macroeconomic headwinds, including rising bond yields, tariff escalations, and potential stagflation risks in the US. QCP Capital suggests that a breakout to new highs could trigger a fresh wave of Fear Of Missing Out (FOMO), attracting sidelined retail investors and further driving up prices. The current situation underscores the volatility and uncertainty inherent in cryptocurrency markets.
