As a crypto investor, I experienced a thrilling moment when Bitcoin (BTC) surged past the $100,000 mark at the opening of the Wall Street market on January 6th. The bullish momentum seemed unstoppable as they successfully navigated the liquidity, paving the way for another journey towards the six-figure milestone.
BTC price needs daily close above $101,000
According to information from CryptoMoon Markets Pro and TradingView, the price of BTC/USD briefly surged up to almost $101,506 on Bitstamp, indicating a sudden rise.
Bitcoin thus began the first full TradFi trading week of 2025 at its highest levels since Dec. 19.
After MicroStrategy, a business intelligence company, made a new Bitcoin purchase announcement, they went on to acquire an additional 1,070 Bitcoins for their corporate holdings, triggering the subsequent action.
Among those affected was a “passive seller” with substantial ask liquidity at the $100,000 level on Binance, as referred to by well-known trader Skew. (ask liquidity: sell orders that can be filled immediately)
In his recent analysis on X, he noted that new offers are rising, a significant factor strengthening potential uptrends or rallies.
The data gathered from CoinGlass’s monitoring showed a clear occurrence of a liquidity sweep, as there were $36 million worth of 24-hour Bitcoin short positions being liquidated at the moment of writing this.
In simpler terms, Rekt Capital, a well-known Bitcoin trader and analyst, stated that for Bitcoin to resume its journey towards finding its own market value, it needs to end the day with a higher price than it is currently at.
“On the Daily timeframe, Bitcoin is located inside a $91000-$101000 range,” he told X followers.
“Bitcoin will need to Daily Close and/or retest the $101k Range High to breakout, just like in early December 2024.”
Another post elaborated on the technical significance of $101,000.
Whenever Bitcoin reaches approximately $101,000, it seems to push further up to around $103,000 according to his analysis, as indicated by the graphs he provided.
“Generally, $101k is the resistance to reclaim as support because it is confluent with the old technical uptrend (orange).”
Bitcoin funding rate avoids overheating
When examining potential economic factors influencing Bitcoin’s price trend, it’s worth noting that the inauguration of the newly elected U.S. President, Donald Trump, was yet to take place, which was still around two weeks off.
Instead of expecting any Trump-related events before January 20th, as was previously thought, it’s now quite uncommon. The volume on the frontend has also stayed low with a balanced skew, suggesting that people have similar feelings about this topic. This is based on their latest bulletin to subscribers of their Telegram channel.
QCP mentioned that the funding rates continue to be substantially lower compared to the period when Bitcoin surpassed $100,000 for the first time in early December.
Without any significant developments in cryptocurrencies expected soon, attention is shifting towards the release of the first U.S. employment report for 2020 this coming Friday, January 10th.
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2025-01-06 18:36