Will Bitcoin reclaim the $100k mark as demand at lower levels propels BTC price to challenge the $95,119 resistance level?
With Bitcoin’s price making a bullish comeback overnight, the crypto market has reclaimed its $3.3 trillion valuation. Currently, Bitcoin is trading at a market price of $96,830 with a 24-hour surge of 5.73%.
With the overnight recovery, market analysts anticipate a bullish recovery in the coming week. Will this recovery create a new swing high above the $100,000 mark?
BTC Price Analysis
On the 4-hour chart, the BTC price action reveals a quick reversal from the $90,742 support level. Notably, the BTC price avoided a bearish closing under this support and took a V-shaped reversal.
Currently, it is challenging the long-standing resistance level above $95K. Furthermore, the 4-hour candle reveals a higher price rejection from the merged 100 and 200 EMA lines.
Nevertheless, the four consecutive bullish candles making the V-shaped recovery account for an over 6% surge. The 4-hour RSI line also reflects a minor bullish divergence with the past two bottom formations.
While BTC dropped from $91,800 to $91,700, the 4-hour RSI line took a double-bottom reversal from the oversold boundary level. This hints at a potential breakout rally for Bitcoin.
In case of a strong closing above the $95,119 resistance level, the BTC price will likely challenge the immediate resistance of $99,514. Interestingly, this is gradually materializing as Bitcoin now trades above $96K.
Meanwhile, a bearish reversal will prolong the consolidation, with the primary support remaining at $90,742.
Bitcoin ETFs Start the Week With Outflows
Despite the impressive bullish escape last night, institutional investments in Bitcoin remained red. The total daily net flow to U.S.-spot Bitcoin ETFs on Monday was negative $284.19 million.
The only positive Bitcoin ETF inflow yesterday was BlackRock, with a fresh investment of $29.46 million. Fidelity recorded the largest outflow on January 13, with $113.64 million.
ARK and 21Shares recorded $92.36 million in outflow. Grayscale’s GBTC recorded $89.01 million in outflow, while Bitwise saw an $18.64 million drain.
Meanwhile, Hashdex, Wisdomtree, Franklin, Invesco, Valkyrie, VanEck, and Grayscale Bitcoin Mini Trust remained with daily net zero outflows.
Bitcoin ETFs
Bitcoin Derivatives and Liquidations Support Bullish Narrative
With Bitcoin sustaining above the $95,000 level, the open interest remains at $60.41 billion. Despite the 0.26% decline in OI over the past 24 hours, the funding rate in Bitcoin has reached 0.0103%.
This marks a significant recovery from a drop to 0.0074% during the pullback phase. However, the long-to-short ratios reflect a significant bearish influence, which remains at 0.967%.
Bitcoin Derivatives
Over the past 24 hours, liquidations amounted to $151.42 million. Long positions recorded $99.46 million in losses, while short liquidations totaled $51.96 million.
On the other hand, the 12-hour liquidations tell a different story, with $24.83 million in liquidations, of which $23.56 million were from the bearish side. This discrepancy in liquidation patterns reflects increased price volatility.
Overall, the recent trend suggests an increased likelihood of a bullish continuation, as the short-term liquidations reveal a weakening of the bearish side.
