In the wild west of cryptocurrency, round numbers carry an almost mythical allure. For Bitcoin, the granddaddy of digital assets, the $100,000 mark has become a Mount Everest waiting to be conquered. But as history suggests, this ascent may require more than a few attempts before the flag can be planted at the summit.
The Psychology of Round Numbers
There’s something about those zeros that sets hearts racing and palms sweating in the crypto sphere. According to market analysts, round numbers carry far more psychological weight in digital asset trading than in traditional finance. When price rallies stall near these key levels, it can trigger a wave of panic selling as jittery investors rush to lock in gains before the perceived bubble bursts.
Round numbers are idolized much more than in traditional finance, and investors and traders are susceptible to panic-selling if price gains stall near a number with several zeros at the end.
A History of Hard-Fought Victories
A glance at Bitcoin’s price history reveals a recurring pattern of multiple attempts to decisively breach each $10,000 increment. From the initial struggle to cement $10,000 as a floor to the labored climbs past $20,000, $30,000 and beyond, it’s typically taken anywhere from 15 to 30 tries for Bitcoin to conclusively overtake these stubborn sell walls.
- Bitcoin closed above $10,000 for the first time in December 2017
- It took 21 attempts to decisively break past $10,000 after the 2018 crash
- Each subsequent $10,000 level required 15-30 tries before being surpassed
The $100,000 Frontier
Now, all eyes are on the grandest prize yet: $100,000. Bitcoin has already made two forays into this rarefied territory, closing within 2% of the target on November 21 and 22. The question on every trader’s mind is whether the third time will be the charm, or if we’re in for another prolonged siege at the gates of this six-figure citadel.
BTC has already closed twice within 2% of that level: Nov. 21 and Nov. 22. Are we about to revert to the long-term pattern of some 20 attempts, or will it be third time’s a charm?
James Van Straten, Senior Analyst at CoinDesk
A New Era or More of the Same?
Recent trading patterns have deviated from the historical norm, with Bitcoin zipping through $80,000 and $90,000 in record time. Some analysts attribute this to the maturing market and growing institutional adoption, which may be tempering the emotional overreactions of yesteryear. However, the $100,000 barrier remains uncharted territory, and old habits may yet reassert themselves.
As the world watches this high-stakes chess match between bulls and bears, one thing is certain: the road to $100,000, whether swift or arduous, will be a defining moment in Bitcoin’s ever-evolving story. Will the king of crypto extend its reign into six-figure dominion, or will psychological barriers prove its undoing once again? Only time, and the collective whims of the market, will tell.
