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HomeCrypto NewsAnalysisBitcoin Price Trapped in a Range: Can Bulls Push for $100K?

Bitcoin Price Trapped in a Range: Can Bulls Push for $100K?

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Will Bitcoin (BTC) sustain above $93k for a potential bounce to $100k amid gradually rising market optimism surrounding Trump’s upcoming swearing-in?

Over the past 24 hours, the crypto market has experienced a bearish lag, with a noticeable loss of momentum over the weekend. The overall market has decreased by 1.12% in the past 24 hours, bringing the total market capitalization down to $3.28 trillion.

Bitcoin, in particular, is down by 0.35%, marking a 5.55% decline over the past week. Currently, BTC is trading at $94,162, with a market cap of $1.86 trillion.

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Bitcoin Price Analysis

On the 4-hour chart, BTC shows a V-shaped reversal following a false breakdown at the $92,654 support level. The price is currently consolidating near the $95,119 resistance level, with the 20 and 50 EMA lines acting as dynamic resistances.

Bitcoin Price Chart
Bitcoin Price Chart

The prevailing bearish pressure suggests a possible bearish crossover between the 100 and 200 EMA lines on the 4-hour chart. However, the RSI remains relatively flat, hovering near the neutral level.

As BTC consolidates above the $93,739 support level, the sideways movement in the RSI indicates no significant loss in trend momentum, which limits the chances of a bearish continuation.

However, the presence of higher price rejection candles tells a different story.

Rising Liquidations Challenge Bitcoin Derivatives Optimism

In the past 24 hours, the Bitcoin derivatives market saw a 1.06% increase in open interest. Currently, Bitcoin’s open interest stands at $60.53 billion, with the long-to-short ratio improving to 0.9904.

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Bitcoin Derivatives
Bitcoin Derivatives

The funding rate currently sits at 0.0085%, showing a notable recovery from last week’s 0.0010% drop. However, market liquidations have increased to $238 million, with bullish liquidations contributing $173.72 million.

Over the past 24 hours, Bitcoin experienced $50.45 million in liquidations, with the bullish positions accounting for $34.39 million.

Despite this, the derivatives market remains optimistic, as evidenced by the rising open interest and improved long-to-short ratio. Additionally, the funding rate recovery to 0.0085% signals renewed confidence in long positions.

Institutional Inflows to BTC to Rise

Last week, U.S. spot Bitcoin ETFs closed on a bearish note, with nearly $150 million in net daily outflows. BlackRock saw a significant outflow of $183.56 million, while Fidelity recorded a positive $16.57 million in inflows.

Despite these outflows, the overall week ended with a net inflow of $307.20 million, marking a second consecutive week of positive inflows. With Donald Trump’s swearing-in ceremony scheduled for January 20, institutional support is expected to improve this week.

This expectation is based on the possibility that the Trump administration may ease regulations surrounding the crypto space.

BTC Price Targets

While the possibility of a strong bullish weekly close remains, short-term BTC price projections suggest a potential correction phase. The immediate support level of $93,739 may struggle to hold, given the higher price rejection candles, which could lead to a retest of $92,652.

On the bullish side, a recovery surpassing the $95,119 resistance could pave the way for Bitcoin to reclaim the $100,000 mark.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

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