Bitcoin moves towards $100,000 liquidity target: Will BTC encounter another squeeze after the price rebound?
The change in the US presidential office triggered a sharp rise in the price of Bitcoin (BTC) and hit a new high above $108,000. After a brief retracement and correction, the star coin has reshaped the calculated uptrend, aiming to break the $100,000 milestone as soon as possible. At the same time, the uncertainty that emerged after the new president took office reduced the bullish activity in the market. In addition, the upcoming FOMC meeting also added icing on the cake.
As bullish sentiment builds, will BTC price sustain above $100,000 or face rejection once again after breaking out of the level?
As BTC price shows some momentum, spot ETF accumulation has increased significantly. According to Coinglass data, spot BTC ETFs recorded one of the largest inflows in the last trading day with over $900 million inflows. On the other hand, the US dollar is expected to weaken in the coming days, which is believed to provide positive momentum for BTC price to rise. What will happen next? With the release of CPI data and Trump's inauguration, will the price hit new highs as before or face another sell-off?
Bitcoin has entered one of the major liquidity zones after breaking above $99,000. After breaking above the $99,373 and $99,534 zones, the coin is struggling to validate gains above the key liquidity zone of $99,694.98, where more than $28.78 million of longs have been exploited. The price slightly retreated after the previous encounter but maintained a solid uptrend. Therefore, a similar price action is now expected, which may slightly drag the price around $99,500 but spark a strong rally that will reach the $100,000 milestone soon.
The daily chart of BTC price shows that the price is experiencing some compression due to the declining trading volume. As a result, the Bollinger Bands have contracted, but the DMI levels show a bullish crossover and the ADX shows a bullish divergence. Now BTC price has entered a critical resistance zone between $98,602 and $99,561, a breakout of which could push the price above $100,000. At the same time, the coin is yet to test the liquidity zone just above $100,016 and $100,177, where more than $55 million of longs have been collectively exploited.
Therefore, BTC price may face some liquidation here but should bounce back quickly as the sentiment is bullish. The cryptocurrency market and Bitcoin price have entered 2025, which is reported to be the last and most exciting year of the bull run. Therefore, the higher target of the bull run is difficult to estimate as veterans and popular analysts believe it will be between $250,000 and $300,000. Therefore, Bitcoin price seems to be on track to form a new high above $110,000 anytime this month.
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