Bitcoin Hits $97K as Bullish Sentiment Grows, is $100K in Sight?
Will the Bitcoin (BTC) price uptrend continue its short-term rally to rechallenge the $100k milestone?
Bitcoin fluctuates near the $97,000 mark after a 24-hour surge of 2.04%. Accordingly, the largest crypto reclaimed its $1.9 trillion valuation and is showing signs of a recovery rally in progress.
As bullish momentum grows, Bitcoin’s recovery path shows potential to reach the $100,000 mark. Amid the increasing bullish sentiment, should you consider adopting a bullish stance?
Bitcoin Price Analysis
On the 4-hour chart, the BTC price action reveals a V-shaped recovery, exhibiting linear growth. The recent lower price bounce from $89,164 has blossomed into a full-fledged bullish rally.
Bitcoin Price Chart
At press time, the current market price is $97,032, reflecting nearly a 10% jump from the previous day.
The growing bullish sentiment has led to a positive crossover between the 20 and 50 EMA lines, signaling a dominant short-term bullish trend. Additionally, the 100 and 200 EMA lines are on the verge of reclaiming a positive alignment.
Furthermore, with bullish divergence playing out as expected, the RSI line is nearing the overbought territory. These technical indicators are delivering a strong buy signal for Bitcoin.
Bitcoin ETFs Record Another Daily Outflow
Despite the massive recovery in Bitcoin price, institutional investment remains underwhelming. On January 14, the daily net inflow of US spot Bitcoin ETFs remained at -$209.82 million.
Bitcoin ETFs
Leading the bearish trend, BlackRock saw an outflow of $219.48 million, followed by Bitwise with a $8.93 million withdrawal.
The only three ETFs with positive net flows were WisdomTree, which saw $10.24 million, VanEck with $5.46 million, and ARK and 21Shares with $2.89 million.
Bitcoin Derivatives Data Analysis
Over the past 24 hours, nearly $200 million worth of liquidations occurred, with $126.65 million attributed to short liquidations, indicating a bullish reversal in the crypto market.
Amid this sentiment, Bitcoin derivatives data shows a 1.54% increase in open interest, rising to $61.51 billion.
Bitcoin Derivatives | Coinglass
On a positive note, the long-to-short ratio has turned bullish, reaching 1.0442, indicating more long positions. However, the funding rate has dropped to 0.0046%, down from its recent peak of 0.0105%.
This suggests that while there are more long positions, traders are reluctant to pay a high premium to maintain a bullish stance. Consequently, BTC’s price could face a short-term correction.
BTC Price Targets
As the derivatives data reflects a minor correction, the BTC price action analysis suggests a potential retest of the 200 EMA line. This could come as a potential entry opportunity for a post-retest bounce.
The 200 EMA currently stands at $95,823. Based on the price action levels, the immediate resistance remains at $99,514, followed by the crucial horizontal support at $95,119.