Bouncing back from the $90K level, the underlying sentiments in the short-term Bitcoin price trend signal massive upside potential. With a potential $110K breakout on the horizon, will the BTC price rally reach top speed this week?
The crypto market witnessed a remarkable recovery last night as Bitcoin BTC $70 371 24h volatility: 4.7% Market cap: $1.41 T Vol. 24h: $52.18 B bounced back after momentarily breaking under the $90,000 mark. With a 2.45% surge over the past 24 hours, Bitcoin is now floating above the $95,000 mark.
Bitcoin Price Analysis
In the daily chart, the Bitcoin price action reveals strong bullish support at the $92,000 support zone. Last night, the BTC price action formed a long-legged doji candle to avoid a bearish closing under this crucial support.
With a 24-hour low set at $89,028, the closing price managed to bounce back at $94,500. Currently, the BTC price action reveals an intraday gain of 0.90% and is currently trading at $95,357.
The bullish recovery also nullified the head-and-shoulder pattern with a neckline at the $92,000 zone. As the Bitcoin price is now recovering, the bullish entry opportunity arises with the short-term price target at the $102,735 peak.
In case of a breakout of the left shoulder, the price action analysis hints at a new all-time high. Based on the chart pattern, the upside potential rises to $112,835.
Supporting the bullish trend, the exponential moving average lines in the daily chart are maintaining a positive alignment. Furthermore, the daily RSI line maintains a positive flow teasing a surge in bullish momentum.
Rising Funding Rate Signals Bitcoin Buying Opportunity
With the overnight recovery, the Bitcoin derivatives analysis reflects a boost in bullish sentiments. The Bitcoin open interest has risen by 1.05% to reach $61.18 billion.
Furthermore, the 12-hour liquidation over the past 12 hours reflects massive short-sighted positions exiting the market. Out of the total $19.17 million of liquidations, the short-sighted positions were liquidated worth $18.44 million.
Amid the recovery, the funding rate has reached 0.0105%, reflecting a significant surge from 0.0074% during the correction phase. Hence, the derivatives market signals a potential buying opportunity in Bitcoin.
Institutional Support Lacks amid $284M Outflows
The daily total net inflow of the US Bitcoin spot ETFs recorded a negative $284.19 million on January 13. BlackRock also 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.
Bitcoin Network Transaction Surge
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. As the activity over the Bitcoin network increases, bullish sentiments are likely to follow.
Conclusion
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.
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