Why is Bitcoin Up Today? BTC Bulls Push Toward $100k
Zafar Naik6 Jan 20252 min read
Bitcoin (BTC) has bounced back by about 6.9% since the start of 2025, reaching a key resistance level of around $99.3k on January 6 during the early New York session. This rally has reduced the fear of a potential drop below $90k, bringing some relief to investors.
Bitcoin’s fear and greed index has jumped to 76%, signaling extreme greed in the market. However, mentions of Bitcoin reaching $110k have slowed compared to two weeks ago. This suggests the market is waiting for clearer signs before making a big move.
Bitcoin Price Expectations
Despite the recent rebound, Bitcoin’s daily chart shows a potential midterm reversal pattern forming. A head and shoulders (H&S) pattern, along with a bearish divergence on the Relative Strength Index (RSI), raises some concerns. However, Bitcoin has consistently closed above the 50-day Moving Average (MA), signaling that bulls are steadily gaining control.
Even with the market’s cautious sentiment, there’s still potential for a surprise rally that could push Bitcoin past $100k. To begin the next major upward phase, Bitcoin needs to hold above the $99.3k resistance level. A consistent close above this mark would indicate strong bullish momentum.
Fundamental Outlook
As Donald Trump prepares for his second-term inauguration, the cryptocurrency market is seeing growing bullish momentum. In the last 24 hours, the total BTC Futures Open Interest (OI) rose by more than 13%, reaching around $63.3 billion. This increase suggests rising confidence in Bitcoin’s future price movement.
Does the Bull Market Have More to Go?
Bitcoin’s supply on centralized exchanges has fallen to about 2.21 million BTC, signaling that the macro bull market is likely not over. With the supply shrinking, demand may continue to outpace availability, potentially driving Bitcoin’s price even higher in the coming months.
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With a shrinking supply and growing futures interest, Bitcoin’s journey into 2025 is shaping up to be one to watch closely.
FAQs
- The Fear and Greed Index at 76% signals extreme greed, often indicating high investor optimism, which can drive Bitcoin prices higher.
