Bitcoin Price Expectations
As we usher in the year 2025, Bitcoin (BTC) has demonstrated a significant rebound, increasing by approximately 6.9% since the beginning of the year. This surge brought the BTC price to retest a vital resistance level of around $99.3k during the early New York session on Monday, January 6. This upward movement has alleviated fears of Bitcoin potentially falling below the $90k mark, creating a more optimistic market sentiment.
The Bitcoin Fear and Greed Index, a valuable indicator of market sentiment, has risen to 76%, denoting extreme greed among investors. Despite this surge in optimism, mentions of Bitcoin reaching $110k have dwindled compared to two weeks ago. This suggests that the market is in a state of anticipation, waiting for clear signals before making significant moves.
As the new week commenced, Bitcoin reached an impressive high of $99.8k. However, traders remain cautious, with many waiting for even higher prices to justify increased excitement. The market dynamics indicate that Bitcoin still has room to grow, especially if it consistently closes above the critical resistance level of $99.3k, potentially paving the way for a new parabolic phase.
Fundamental Outlook
In anticipation of Donald Trump’s second-term inauguration, the cryptocurrency market has started to gain bullish momentum. Over the past 24 hours, the total Bitcoin Futures Open Interest (OI) has surged by more than 13%, reaching approximately $63.3 billion. This increase in OI is a clear indicator of growing investor interest and confidence in the market.
Additionally, the ongoing reduction in Bitcoin’s supply on centralized exchanges, now standing at about 2.21 million, suggests a continued macro-level bullish trend. The decreasing supply signifies reduced selling pressure and a long-term positive outlook for BTC enthusiasts.
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FAQs
How does Bitcoin’s Fear and Greed Index affect its price?
The Fear and Greed Index at 76% indicates extreme greed, often reflecting heightened investor optimism. This optimism can drive Bitcoin prices higher as more investors are inclined to buy.
Is Bitcoin price going to break $100k soon?
Bitcoin’s price has the potential to surpass $100k if it consistently maintains a closing price above $99.3k. This is despite the current bearish divergence in the RSI and the Head and Shoulders (H&S) pattern, which could pose challenges.
Why is Bitcoin’s supply on exchanges decreasing?
The decline in Bitcoin’s supply on centralized exchanges, now at 2.21 million, points towards a long-term bullish outlook. This reduction is due to decreased selling pressure as more investors choose to hold their BTC, anticipating future price increases.
