Bitcoin News- Bitcoin Recovers After $8 Billion Market Liquidation
Bitcoin News– Bitcoin (BTC) saw a significant bounce-back after a massive market-wide liquidation on Monday wiped out over $8 billion in leveraged positions. Following the sell-off, BTC surged 12.35% to a high of $102.5K before retracing.
Bitcoin Price Today: A Pullback or a Setup for Higher Highs?
Despite briefly reclaiming $100K, Bitcoin is currently trading at $98,136.0, reflecting a 3.17% daily increase. The sharp recovery seen earlier seems to be reversing—raising concerns about whether the bullish momentum is losing steam. Will Bitcoin consolidate around current levels, or is another breakout imminent?
Funding Rate Signals Further Upside for Bitcoin
Bitcoin’s funding rate, a key metric that reflects market sentiment, has historically played a crucial role in predicting price reversals. The funding rate represents the cost of maintaining a perpetual futures contract at the same level as the underlying spot price.
- A positive funding rate indicates bullish sentiment, with long positions paying short positions.
- A negative funding rate signals bearish sentiment, where short positions compensate longs.
Historically, each time the 24-hour funding rate flipped negative, Bitcoin staged a quick reversal. If this pattern continues, the latest correction may be temporary, and BTC could be gearing up for another leg higher.
Bitcoin Price Analysis: Key Levels to Watch
Despite the sharp drop and liquidations, Bitcoin’s broader bullish trend remains intact. BTC briefly dipped to $92.5K, but the subsequent recovery has kept price action above the critical $97.2K support level. This level will be pivotal in determining the next move for BTC.
If buyers defend $97.2K, BTC could resume its uptrend, targeting key resistance between $101.4K – $105.5K. Breaking above this range could pave the way for a retest of the $110K all-time high (ATH). A successful breakout above $110K could trigger a new bull run, potentially propelling BTC to $123K, which aligns with the 161.8% Fibonacci extension level of the recent rally.
Historical Comparison: Can BTC Hit $123K?
A similar fractal pattern emerged between November 14, 2024, and November 23, 2024, when BTC rallied 14% and reached a then-ATH of $108.3K—coinciding with the 161.8% Fibonacci extension level.
If history repeats, Bitcoin could extend its rally to $123K, following the same Fibonacci projection model.
Strategic Buy Zones & Profit-Taking Levels
Bitcoin’s price action suggests that breaking through $101.4K – $105.5K is key for further upside. Clearing this hurdle could lead to new highs above $110K, potentially setting the stage for $123K.
On the downside, failure to hold $97.2K as support could signal further declines. Key levels where BTC could find strong support include:
- $92.5K – A historically strong support level.
- $89K – Another crucial demand zone.
- $85.8K – The last major support before deeper corrections.
These price levels have previously acted as bounce zones, making them potential accumulation points if BTC retraces further.
Will Bitcoin Continue Its Bullish Run?
Despite ongoing short-term volatility, Bitcoin’s overall market structure continues to exhibit strong bullish momentum. The significant rebound from $92.5K, coupled with a shift in the funding rate, indicates that BTC could be preparing for another substantial move to the upside. Historically, such funding rate reversals have often preceded major price recoveries, making this an important indicator for traders and analysts alike. Market participants will be closely monitoring the $97.2K level, as it serves as a key pivot point for Bitcoin’s next move. A decisive breakout above $105.5K could act as a catalyst for a renewed bullish rally, potentially driving BTC towards higher resistance zones. If Bitcoin manages to sustain price action above $110K, it could open the door for further gains, leading to a new all-time high (ATH) beyond $123K. This price level aligns with the 161.8% Fibonacci extension, reinforcing its significance as a long-term price target. \n\nWith increasing investor confidence and strong technical indicators backing the bullish outlook, Bitcoin’s next few moves will be crucial in determining whether it can maintain its uptrend and reach new price milestones.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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