Bitcoin Price Analysis: BTC Breaks Above $100K, Is $120K Next?

TL:DR;

• Ripple’s cross-border token became one of the best performers in the cryptocurrency market on a monthly scale at one point, but can it go even higher?
• ChatGPT and Perplexity weigh in on the factors needed for its market cap to skyrocket to the $1 trillion mark.

Toncoin (TON), a crypto gaining traction for its notable blockchain technology, has recently exhibited signs of recovering positive momentum.

Following a period of subdued activity, recent metrics suggest renewed confidence among investors, potentially signalling an upward trend.

At the center of this observation is the 90-day percent return metric, which has historically been a reliable indicator of market sentiment for Toncoin.

Toncoin Sees Renewed Positive Momentum: What Lies Ahead?

CryptoQuant analyst Darkfost shared insights into the TON market in a recent post titled “TON Positive Momentum is Getting Back.”

The analyst noted that the 90-day percent return has turned positive, currently sitting at around 9%. While this is a modest figure compared to the explosive 200% gains seen during TON’s previous rally, it marks a shift that could lead to greater market optimism.

Notably, the 90-day percent return metric turning positive is a noteworthy development for Toncoin. This indicator reflects the average returns over a 90-day period, offering insights into investor behaviour and market sentiment.

Historically, positive returns have often preceded significant upward trends in TON’s price. While the current 9% return signals growing investor confidence, it remains a cautious indicator, suggesting potential gains without confirming a definitive rally.

Darkfost further reveals that during TON’s last significant rally, this metric soared beyond 200%, showcasing its capacity for really strong momentum when “conditions align.” He then emphasized that while this shift in returns is promising, it is too early to predict whether TON will replicate its previous performance.

TON Market Performance

Meanwhile, despite the positive momentum observed by Darkfost, Toncoin has been in a downward turn over the past week, dropping by nearly 10%.

Even in the past 24 hours, TON is still seeing a form of bearishness in its price as it currently trades at a price of $6.27 pushing its price further away from its all-time high of $8.25 recorded in back in June.

Particularly, at current market prices, TON is down by 24.2% from this peak and 3.1% in the past day. This decrease has also unsurprisingly affected the asset’s market cap which has decreased from over $17 billion seen earlier this month to now at $15.9 billion as of today.

TON’s daily trading volume has also plunged from over $1 million on December 10 to roughly $402.8 million as of today.

Regardless of this bearish performance, analysts seem to continue to be bullish on TON. In a recent analysis uploaded on X, The Moon Show revealed that as TON recently formed a symmetrical triangle on its 1-hour chart, a break to the upside could bring its price to trades as high as $7.55.

Featured image created with dALL-E, Chart from TradingView

There are still two weeks left for the year to end. This means you have two more weeks to grow your money and all that you have to do is select the right crypto to invest in.

So if you want to enter 2025 with a bang, we have picked the top 5 best cryptos to invest in at the moment. All of the tokens listed below are currently in their presale so you’ll definitely get a great deal.

As per expert predictions, all 5 of them are expected to do great in 2025. Let’s take a closer look at some of the best meme coins to see which one might be the best fit for you. 1. Wall Street Pepe

Wall Street Pepe is still in its presale phase and has already managed to raise over $4 million. Its drastic growth has led some experts to believe that it has the potential to offer a x100 return.

The platform is also offering staking rewards, encouraging investors to hold onto their tokens for 145% APY. This has driven countless investors to the project, further fuelling its value.

Anyone interested in the staking rewards should definitely hurry up because the staking reserve is reaching its limit and the reward will also go down with time. 2. Cat Slap

Data shows that the indicators related to the Bitcoin derivatives market have recently been heating up, which could lead to more volatility in BTC’s price.

Bitcoin Open Interest & Leverage Ratio Have Shot Up

As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the Bitcoin Open Interest has registered a sharp increase alongside the asset’s return above the $100,000 level. The “Open Interest” here refers to a metric that keeps track of the total amount of derivatives positions related to BTC that are currently open on all centralized exchanges.

Below is the chart shared by the analyst that shows the trend in the percentage change of the Bitcoin Open Interest over the past month:

As displayed in the graph, the Bitcoin Open Interest has witnessed a sharp positive change recently, which implies a large number of positions have popped up on the market. In the chart, Maartunn has highlighted the previous instances of the indicator observing a large percentage increase. It would appear that the price generally saw a cooldown when this pattern formed during the past month.

As for the reason behind this trend, the answer is that more positions usually imply the presence of a higher amount of leverage in the sector. A chaotic event known as a squeeze can become more likely to occur in these circumstances.

During a squeeze, a large number of positions are liquidated at once and provide fuel to the price move that caused them. The elongated price move then unleashes a cascade of further liquidations.

A squeeze can be more probable to affect the side of the market that has the more leveraged positions. The previous increases in the Open Interest came alongside uptrends, so the new positions were likely long ones. This may be why the market ended up seeing a long squeeze to wipe out these excess positions.

It’s possible that the latest Open Interest increase could also lead to a similar outcome for Bitcoin, since these fresh positions have also come alongside a rally. It all depends, however, on whether these positions are overleveraged or not.

Unfortunately for the cryptocurrency, this requirement also seems to be fulfilled, as data for the Estimated Leverage Ratio shared by CryptoQuant author IT Tech in an X post suggests.

The Estimated Leverage Ratio tells us, as its name implies, the average amount of leverage that the users on the derivatives market are opting for. Given that this metric has also spiked alongside the Open Interest increase, the new positions that have appeared could be carrying significant leverage.

It now remains to be seen how Bitcoin will develop in the coming days, given the potential overheated conditions that have developed in these derivatives indicators.

BTC Price

At the time of writing, Bitcoin is floating around $100,400, up more than 2% over the last seven days.

Within a few hours following a tweet by Changpeng Zhao, the CEO of Binance, the Travala token, AVA, has risen by 300%. For the crypto travel agency, which lately revealed having reached $100 million in annual revenue, this increase marks a turning point. From $0.80 to $30.1, the price of AVA has exploded, courtesy of growing interest in the use of digital currency in the travel industry.

Binance Early Investment

Binance had already invested in Travala before the pandemic, as disclosed in Zhao’s tweet on December 12. Both investor confidence and Travala’s position as a frontrunner in the space of crypto bookings were bolstered by this statement. At the time of writing, AVA was trading at approximately $2.51, showcasing its remarkable recovery since hitting an all-time low earlier this year.

Travala Strategic Initiatives

Travala has come up with a new way to handle bank reserves, which includes both AVA and Bitcoin (BTC). This change was made purposefully to strengthen its market position and urge more people to use cryptocurrencies to book travel. According to Juan Otero, CEO and co-founder of Travala, the plan shows their commitment to better customer experiences while keeping their finances strong.

Travala is changing the way people book travel as it accepts more than 100 cryptocurrencies as a form of payment. The platform allows users to reserve hotels, flights, and activities in 230 countries, offering a wide option for visitors looking to use digital currencies.AVA And Cryptocurrency In Travel

The rise in AVA’s price points to a more general trend towards digital currency integration in the travel sector than just temporary change. Platforms like Travala are likely to get rather popular as traditional travel companies become convinced of blockchain technology’s possibilities. The disclosure of their treasury reserves is expected to attract more investors looking for innovative ideas in the crypto field.

Analysts, meantime, envision a great future for AVA. Forecasts indicate that should present trends continue, the altcoin might see significant increase in 2024 and beyond. Through continuous innovations and cooperative efforts with reputable travel agencies, Travala is starting to take front stage in the evolving sector of cryptocurrency travel.

The significant increase in Travala’s AVA token after CZ’s endorsement exemplifies the influence of social media and prominent individuals on market dynamics. As Travala persists in innovating and broadening its services, it might potentially usher in a new epoch of travel driven by digital currency.

Featured image from Pintu, chart from TradingView