Bitcoin Price Rebound and Current Trends
Since the start of 2025, Bitcoin (BTC) has experienced a significant rebound, rising approximately 6.9 percent. This upward movement is testing a crucial resistance level around $99.3k, observed during the early New York session on Monday, January 6. The apprehension of Bitcoin dropping below the $90k mark has markedly decreased, providing some relief to investors.
Investor Sentiment and Market Reactions
The Bitcoin fear and greed index has soared to 76 percent, indicating a state of extreme greed among investors. Despite this surge, discussions about Bitcoin reaching the $110k mark have diminished compared to earlier weeks. This suggests a cautious sentiment among traders who are waiting for more definitive market signals.
Bitcoin Price Expectations
Despite the recent price rebound, Bitcoin appears to be forming a potential midterm reversal pattern on the daily charts. Notably, a head and shoulders (H&S) pattern is emerging, alongside a bearish divergence on the daily Relative Strength Index (RSI). Nevertheless, Bitcoin has consistently closed above the 50-day Moving Average (MA), hinting that bullish momentum could be building.
Potential for a Surprise Rally
Given the subdued bullish sentiment among the investing community, there is a possibility of a surprise rally that might propel Bitcoin beyond the $100k threshold. For this to materialize, Bitcoin needs to maintain a consistent close above the resistance level of approximately $99.3k, potentially igniting a new parabolic phase.
Fundamental Outlook
As anticipation builds ahead of Donald Trump’s second inauguration, the cryptocurrency market is gradually gathering bullish momentum. The total Bitcoin Futures Open Interest (OI) has surged by over 13 percent in the past 24 hours, reaching around $63.3 billion. This increase reflects growing investor confidence and interest in Bitcoin’s future.
Market Supply Dynamics
Concurrently, the supply of Bitcoin on centralized exchanges has dwindled to approximately 2.21 million. This reduction suggests that a macro bull rally for Bitcoin might still be in play, as investors continue to pull their assets off exchanges, potentially indicating long-term holding strategies.
As the market continues to evolve, these trends and indicators will be crucial in shaping Bitcoin’s trajectory in the upcoming weeks and months.
