As the calendar ushered in the year 2025, Bitcoin (BTC) has observed a remarkable rebound, surging approximately 6.9 percent. This uptick has brought Bitcoin close to retesting a critical resistance level of around $99.3k, a milestone reached on Monday, January 6, during the early trading sessions in New York. The recovery has eased concerns about a potential dip in Bitcoin’s price below the $90k threshold, a fear that had gripped many investors in recent times.
Bitcoin Price Expectations
Despite the recent upward momentum, Bitcoin’s price pattern on a daily chart suggests the formation of a potential midterm reversal. Notably, the flagship cryptocurrency is exhibiting the characteristics of a head and shoulders (H&S) pattern, accompanied by a bearish divergence visible on the daily Relative Strength Index (RSI). Nevertheless, Bitcoin has consistently closed above the 50-day Moving Average (MA), indicating that bullish investors are gradually reclaiming control.
In the midst of a subdued bullish sentiment among traders, there remains a possibility for an unexpected rally that could propel Bitcoin’s price beyond the $100k mark. For this to materialize, it is crucial for Bitcoin to consistently close above the resistance level of approximately $99.3k, setting the stage for the next parabolic phase of growth.
Understanding the Market Sentiment
Furthermore, the Bitcoin fear and greed index has surged to an impressive 76 percent, signifying extreme greed among investors. However, anticipation for Bitcoin reaching $110k has waned compared to two weeks ago. This indicates a cautious market atmosphere, with participants patiently waiting for clearer signals before making substantial investments.
Bitcoin’s recent performance, reaching a high of $99.8k to start the new week, underscores the market’s resilience. However, the previous spike in mentions of $110k+ Bitcoin from two weeks ago suggests that traders are still holding out for even higher prices before expressing significant enthusiasm.
Fundamental Outlook
As Donald Trump prepares for his second term inauguration, the cryptocurrency sector is steadily building bullish momentum. Recently, the total Bitcoin Futures Open Interest (OI) has surged by over 13 percent in the last 24 hours, reaching approximately $63.3 billion. This increase signifies a growing interest and confidence in Bitcoin’s market potential.
Additionally, the ongoing reduction of Bitcoin’s supply on centralized exchanges, now down to about 2.21 million, further supports the notion that the macro bull rally for Bitcoin is far from over. This reduction in supply could drive demand and potentially lead to higher prices as investors seek to acquire Bitcoin before it’s too late.
In conclusion, Bitcoin’s journey in 2025 has begun with a positive trajectory, marked by significant price rebounds and evolving market dynamics. As the market continues to navigate these changes, Bitcoin’s potential for growth remains robust, contingent on overcoming key resistance levels and capitalizing on favorable market conditions.
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