Bitcoin’s price recently surged toward $106,000 but failed to sustain its upward momentum, quickly dropping to $102,277. Over the past 24 hours, Bitcoin’s trading volume increased by 10.4%, reaching $68.2 billion.
On a broader timeline, Bitcoin fell below $100,000 on January 7 and has largely trended downward since. The price reached a low of $89,397 on January 13 but has since started recovering. Over the past day, Bitcoin’s market capitalization grew by 0.64%, standing at $2.05 trillion.
Positive Funding Rates for Bitcoin
Analysts note that price increases in Bitcoin tend to coincide with higher interest in building Bitcoin reserves. The recent price rise of 9.3% over the week and 1.1% in the past 30 days reflects this trend. Yesterday, Bitcoin nearly hit $106,000 but faced resistance, leading to a decline to $102,277.
Data from Santiment shows that the 7-day Market Value to Realized Value (MVRV) ratio suggests short-term investors are beginning to take profits, raising the risk of a potential price drop. Using a 7-day moving average (MA) smooths out fluctuations and helps identify potential reversals. When the MVRV indicator hits 3%, it often signals a correction. After Bitcoin’s recent 18% rise, the indicator has reached this critical level, implying a possible downturn. Despite this, Bitcoin’s funding rate remains positive at 0.0116%, indicating buyers still have an advantage to counter the bearish trend.
Technical Analysis of Bitcoin’s Price
Bitcoin recently rebounded from $100,000 and approached $106,000 but encountered selling pressure, leading to a decline near $102,000. Currently priced at $103,819, the cryptocurrency has risen 1.15% in the past 24 hours. The Bitcoin/USDT pair hovers below $104,000, which serves as a critical resistance level. If it surpasses this threshold, the price could rise to $108,256 and potentially $111,000. However, if it falls below the 20-day Exponential Moving Average (EMA20) on the 1-hour chart, the price could decline to $100,000. The Relative Strength Index (RSI) indicates buying interest, suggesting a potential upward move.
Bitcoin Price Outlook
Short-term: Bitcoin might continue facing resistance near $104,000. However, as selling pressure eases, it could consolidate below $108,000.
Long-term: According to Coincodex, Bitcoin’s price may rise by 23.95% to reach $128,175 by February 17, 2025. Their technical indicators show a bullish sentiment, and the Fear & Greed Index indicates extreme greed with a score of 77. Over the last 30 days, Bitcoin has seen price gains on 15 days (50% of the time), with a volatility rate of 2.48%. This forecast suggests that now might be an opportune time to invest in Bitcoin.