Bitcoin (BTC) has seen a strong rebound of around 6.9 percent since the start of 2025, with prices retesting a crucial resistance level of $99.3k on Monday. This surge has alleviated fears of a potential drop below $90k, as the market sentiment has shifted towards optimism. The fear and greed index for Bitcoin has spiked to 76 percent, indicating extreme greed among investors. However, mentions of Bitcoin reaching $110k remain relatively low, suggesting that traders are cautiously awaiting clear signals before making any significant moves.
In terms of price expectations, Bitcoin has been forming a potential head and shoulder pattern on the daily chart, accompanied by a bearish divergence on the Relative Strength Index (RSI). Despite these bearish signals, the cryptocurrency has managed to close above the 50-day Moving Average (MA), a positive sign that indicates bullish momentum. With low bullish sentiment prevailing in the market, there is a possibility of a surprise rally that could propel Bitcoin price above $100k in the near future. To achieve this, Bitcoin must consistently close above the resistance level of $99.3k to initiate the next phase of its parabolic rally.
Looking at the fundamental outlook, the cryptocurrency industry is gaining bullish momentum ahead of Donald Trump’s second term inauguration. The total BTC Futures Open Interest has surged by over 13 percent in the past 24 hours, reaching approximately $63.3 billion. Additionally, the supply of Bitcoin on centralized exchanges has decreased to 2.21 million, indicating a reduction in selling pressure and hinting at a continuation of the macro bull rally.
In conclusion, despite some bearish signals in the technical indicators, the overall outlook for Bitcoin remains positive. With investor optimism on the rise and bullish momentum building in the market, there is a possibility of Bitcoin breaking the $100k mark in the near future. As the cryptocurrency industry continues to evolve and grow, staying informed with the latest news and trends is essential for navigating this dynamic market.