%Bitcoin (CRYPTO: $BTC) bulls are now hoping that the world’s leading %Cryptocurrency will top $120,000 U.S. as hopes build for a year-end Santa Claus rally.
The new target comes as Bitcoin hit a new all-time high above $106,500 U.S. as investors prepare for an upcoming interest rate cut from the U.S. Federal Reserve.
Recent catalysts that have supported growth in Bitcoin include increased speculation of U.S. president-elect Donald Trump creating a federal Bitcoin reserve.
Bitcoin is now up 8% in December, 50% since the U.S. presidential election held in November, and 145% for the year.
Recent price action has shown Bitcoin forming higher lows, indicative of a sustained uptrend.
The formation of a bullish continuation pattern after recent highs could signal further increases in the price in coming weeks.
At the same time, investors are bracing for the traditional year-end Santa Claus Rally on Wall Street when securities rally to close out the trading year.
Since 2015, Bitcoin has rallied between 8% and 46% during December.
Options traders are now taking out contracts with a target price of $120,000 U.S. on Bitcoin as they bet on the crypto’s price continuing to climb higher.
Many analysts are also increasing their price targets on Bitcoin amid the current rally and as the Trump administration prepares to take office in January.
The largest cryptocurrency by market capitalization rose more than 4% in the past 24 hours to trade at a record high of $106,509 U.S.
Bitcoin has since pulled back and is currently trading at $104,500 U.S.
