Key Points
- Bitcoin (BTC) surpasses $102,000 mark, with a $111,000 target in sight due to strong ETF backing.
- Institutional support and bullish market trends are driving Bitcoin’s growth.
Bitcoin (BTC) has recently crossed the $102,000 milestone with a 2.13% intraday gain. This increase is part of a growing bullish trend in the cryptocurrency market.
Many speculate whether this upward trajectory will result in a new all-time high before the swearing-in of Donald Trump as the new US President.
Channel Breakout in Bitcoin Analysis
In the 4-hour chart, Bitcoin’s price action shows a bullish breakout of a falling channel pattern. Over the past four days, BTC price has risen by 15%, moving from $89,164 to its current market price of $102,063.
The strengthening bullish trend is also indicated by the golden crossover between the 50 and 200 EMA lines, which signals a buying opportunity. The 4-hour RSI line has also moved into the overbought boundary zone, further supporting the bullish sentiment.
The BTC price action suggests a rounding bottom reversal with a neckline at $102,514. If this level is breached, it could challenge the previous swing high near the $108,000 mark. According to Fibonacci levels, the upside price target for Bitcoin is $111,573.
The crucial support now is at $100,874. The breakout rally from the falling channel pattern hints at a rounding bottom reversal, making the Bitcoin landscape extremely bullish. As a result, the likelihood of new all-time highs is greater than ever.
Institutional Support Fuels Bitcoin’s Momentum
As Bitcoin’s price continues to rise, institutional support has also returned in a big way. The daily net inflow of US-bought Bitcoin ETFs on January 16 recorded $626.15 million.
BlackRock’s IBIT ETF led the buying spree, registering an inflow of $527.87 million. ARK and 21Shares followed as the second-largest buyer with a combined inflow of $115.44 million.
While most ETFs showed positive or neutral flows, Grayscale Bitcoin Trust recorded an outflow of $69.97 million. The two consecutive green days for Bitcoin ETFs have propelled inflows to nearly $1.4 billion, indicating a smooth bullish trajectory.
In a recent X post, crypto analyst Ali Martinez highlighted the changing dynamics in Bitcoin’s spot market. Long-term holders are turning greedy as Bitcoin crosses the $100,000 mark.
This is evident from the long-term holder NUPL indicator reaching the euphoric stage. However, Martinez also cautioned about potential corrections in Bitcoin due to market volatility.
The $97,000 level is acting as a crucial support according to the UTXO realized price distribution indicator. As long as this level holds, the broader bull run remains intact, despite potential short-term corrections.
The broader market anticipates a continuation of Bitcoin’s bullish trend. A 5.82% increase in Bitcoin open interest, reaching $65.93 billion, highlights rising speculation. Additionally, options volume surged by 10.60% to reach $4 billion.
The long-to-short ratio over the past 24 hours has reached 1.035, reflecting a greater number of bullish positions. However, Binance’s top trader accounts show a long-to-short ratio of less than 1, suggesting fewer accounts holding bullish positions.
When considering position size, the ratio jumps to 1.7025, demonstrating bullish dominance. The funding rate has spiked to 0.0117, showing traders’ confidence in holding bullish positions. Thus, derivatives data underscores high optimism among traders, supporting the broader bullish narrative for Bitcoin.
In summary, Bitcoin’s bullish momentum and strong institutional support signal potential new highs, with $111,573 as the next target.
