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The cryptocurrency market has faced a rough patch over the past month, with global crypto market capitalization slipping from a peak of $3.79 trillion on December 17 to $3.14 trillion yesterday. However, a glimmer of recovery has emerged, with the market bouncing back to $3.28 trillion—shedding just 0.44% in the last 24 hours. Bitcoin, in particular, has followed suit, gaining 1% over the same period. At press time, the BTC token trades at $94,820, with a market cap of $1.87 trillion and a 24-hour trading volume of $72.08 billion.
Bitcoin Price Analysis: Will the Bulls Retake Control?
Bitcoin’s daily chart reflects a turbulent ride, as the token dropped over 5.5% yesterday, breaching the critical $91.8K support level. As reported on CryptoNewsZ earlier, breaching this zone could push the BTC token into a bearish zone, flirting with the $85K—$90K range, a historically favorable entry point for buyers.
True to form, a surge in buying interest drove BTC back up, reclaiming the $95K level after the cryptocurrency briefly touched the $89K mark. While this rebound has reignited optimism, the road ahead is laden with challenges. The immediate test lies at the $95,868 resistance, which was yesterday’s peak.
If Bitcoin clears this level, it could gain traction to surpass the 50% Fibonacci retracement level at $96,781—a vital hurdle. Breaking past these barriers could fuel a renewed buying spree, setting the stage for a run toward the 61.8% Fibonacci retracement at $99,515.
This zone is critical for unlocking the psychological $100K threshold. Should Bitcoin shatter this milestone, it may rally further, eyeing the $102K level and beyond. However, failure to maintain upward momentum could cause the cryptocurrency to revisit the $96K zone for support, postponing its bullish ambitions.
On-Chain Insights: A Signal of Bullish Momentum?
Bolstering this bullish outlook, on-chain metrics from CoinGlass reveal a sharp uptick in BTC derivatives volume, which now stands at $155.17 billion—a 155% increase within 24 hours. Furthermore, Bitcoin’s net inflow has shifted to $7.74 million, a significant turnaround from the previous day’s outflow of -$685.29 million.
This suggests a huge influx of buying activity, hinting at an imminent price surge. On the other hand, assuming the BTC token breaches $100K, short sellers could face liquidations exceeding $354.8 million. Conversely, a drop to $89K could trigger a wave of long position liquidations totaling around $934.76 million—an outcome that could fuel market volatility.