Key Points
- Bitcoin’s price broke the $95,000 mark following a significant recovery in the crypto market.
- The bullish trend is supported by positive alignment in the daily chart’s exponential moving average lines.
Bitcoin experienced a significant recovery, bouncing back after momentarily falling under the $90,000 mark. This recovery resulted in a 2.45% surge over the past 24 hours, pushing Bitcoin’s price above the $95,000 threshold.
Analysis of Bitcoin’s Price
The daily chart shows Bitcoin’s price action revealing strong bullish support at the $92,000 support zone. Last night, the Bitcoin price action formed a long-legged doji candle, preventing a bearish closing under this critical support.
Bitcoin’s closing price managed to recover at $94,500 from a 24-hour low set at $89,028. Currently, Bitcoin is trading at $95,357, reflecting an intraday gain of 0.90%.
The bullish recovery also nullified a head-and-shoulder pattern with a neckline at the $92,000 zone. As Bitcoin’s price is now recovering, a bullish entry opportunity arises with the short-term price target at the $102,735 peak. If there’s a breakout of the left shoulder, the price action analysis suggests a new all-time high, with the upside potential rising to $112,835.
Rise in Bitcoin Buying Opportunity
The Bitcoin derivatives analysis shows a boost in bullish sentiments following the overnight recovery. The Bitcoin open interest has increased by 1.05% to reach $61.18 billion.
Furthermore, the past 12 hours witnessed massive short-sighted positions exiting the market. Out of the total $19.17 million of liquidations, short-sighted positions were liquidated worth $18.44 million.
The funding rate has reached 0.0105%, indicating a significant surge from 0.0074% during the correction phase. This suggests a potential buying opportunity in Bitcoin.
Institutional Support and Bitcoin Network Transaction Surge
The daily total net inflow of the US Bitcoin spot ETFs recorded a negative $284.19 million on January 13. BlackRock remains the single ETF maintaining a positive flow of $29.46 million.
However, Fidelity registered a massive outflow of $113.64 million. ARK and 21Shares, Grayscale Bitcoin Trust, and Bitwise recorded an outflow of nearly $200 million.
As Bitcoin registers an overnight recovery, the number of large transactions over the Bitcoin network has significantly surged. The transaction count increased from 15.62K to 20.28K. Along with the count, the volumes have also increased from $39.4 billion to $57.95 billion.
Despite the delay in institutional support, the derivatives and the on-chain space of Bitcoin are gradually turning optimistic. The price action analysis reflects a failed bearish pattern, increasing the reversal chances.
Furthermore, the swearing-in ceremony of Donald Trump on January 19 is likely to fuel the hype in the crypto market over the next few days. Hence, the uptrend is likely to continue in Bitcoin over this week.