As Bitcoin reaches the $102K price target, bulls face a critical decision. Will the BTC price continue its upward momentum toward $106,888?
Bitcoin has finally surpassed the psychological $100,000 mark, riding a seven-day bullish streak. Peaking at $102K, will the BTC price continue to $106,888, or is this a trap for bulls at a crucial resistance point?
Bitcoin Price Analysis
With seven consecutive bullish candles on the daily chart, BTC has reclaimed the six-figure price milestone. Last night’s 4.02% surge formed a massive bullish engulfing candle, breaking through the key threshold.
The BTC price trend reached a 24-hour high of $102,760, hitting the price target as predicted in our previous article. However, the substantial overhead supply has led to a minor pullback, with the current Bitcoin price sitting at $101,637.
This pullback is testing the broken resistance trendline of a rising channel pattern. The overnight recovery resulted in a bullish breakout of the rising channel, but the short-term pullback raises concerns about a potential bearish reversal. This could be a bullish trap for traders betting on the breakout rally.
The overnight surge has pushed the 4-hour RSI line into the overbought zone. Additionally, the bullish gap between the 50 and 100 EMA lines has widened after the recent crossover.
Bitcoin ETF Inflows Reach $987M
Amid the overnight recovery, institutional support for Bitcoin has resulted in massive inflows. On January 6, the U.S. spot Bitcoin ETFs registered a daily net inflow of $987.06 million.Â
Additionally, most of the inflows came from Fidelity and BlackRock, acquiring $370.24 million and $209.08 million, respectively. The total net assets under the institutions have risen to $116.67 billion, representing 5.77% of the Bitcoin market cap.
Bitcoin Bulls Dominate the Derivatives Market
As the bullish trend breaks to the $100,000 mark, the Bitcoin open interest has risen significantly by 2.20% to reach $65.24 billion. The long-to-short ratio over the past 24 hours remains bullish at 1.0227%.Â
The OI-weighted funding rate has risen to 0.0044%. Over the past 24 hours, total liquidations amounted to $51.80 million, primarily from the bearish side. Short liquidations accounted for $40.06 million, while bulls experienced a liquidation wave of $11.74 million. This data suggests that the derivatives market remains highly bullish, signaling a continuation of the uptrend.
BTC Price Targets
Technical indicators reflect the overnight surge in buying pressure. However, the short-term pullback casts a shadow over the uptrend’s potential.
From an optimistic perspective, a post-retest reversal could see Bitcoin targeting $106,888. However, a close below $101,306 (the immediate support) could lead to a retest of the $100,000 mark.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
