The cryptocurrency market is showing a strong performance as Bitcoin leading the charge. Looking at weekly performance, Bitcoin saw an impressive 9% increase after an earlier slowdown, Ether rose more than 3%, and XRP experienced a massive surge of nearly 34%.
With the crypto market rebound underway, the market is waiting for its next move as Donald Trump prepares for his inauguration. While some anticipate a bullish trend, questions linger about the level of volatility that could emerge in the coming months.
Related: Bitcoin Predicted to Hit $200K in 2025: Market, Policy Catalysts Ahead
Breakout Above Key Resistance
Analyst Josh of Crypto World noted that Bitcoin has broken above the critical $100,500 resistance level on its daily chart. This comes after a period of sideways movement that reset indicators like the RSI to neutral levels, allowing for further upward movement. The breakout, along with a bullish RSI, points to a price target around $116,000, meaning a 15% possible upside.
However, the analyst warned that Bitcoin is facing resistance around $106,000 to $107,000, with a possible move toward $108,000. Should a pullback occur, Bitcoin has support at $102,000 to $103,000, with stronger support around $100,000.
On the weekly Bitcoin chart, Bitcoin remains in a bull market, and as the second half of January progresses, the next big move could be imminent.
Related: Bitcoin’s $100K Rally: Trump, Congress, and Crypto Adoption
Liquidity and Price Drivers
The breakout is accompanied by a rise in the daily Bitcoin RSI, triggering a short squeeze and the liquidation of several short positions. Similar signals on the MACD indicator hint at a slow-down in momentum, but a big move could materialize soon.
The Super Trend indicator on the 4-day Bitcoin chart remains green, indicating an ongoing bull market. However, a bearish divergence is still present on the weekly chart, with higher highs in price and lower highs in the RSI. A confirmed breakout above $105,000 would invalidate this bearish divergence, keeping the bullish outlook intact.
Additionally, when Bitcoin’s price broke out, it triggered a short squeeze and pushed the price higher. There is still some liquidity around $105,000 to $107,000, which could help drive the price further up.
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