Institutional demand remains strong, with Bitcoin ETF inflows supporting bullish sentiment.
The discussion around a US Bitcoin reserve adds long-term bullish fundamentals.
Bitcoin whale movements suggest major market repositioning, increasing volatility risks.
A breakout rally could push BTC toward $112,375 and $116,085.
With the Federal Market Open Committee (FOMC) deciding to keep US Federal Rates at 4.25-4.5%, global markets and Bitcoin are witnessing bullish tailwinds. Over the past 24 hours, the total crypto market cap has reached $3.5 trillion, witnessing a price surge of nearly 3%.
With the broader market recovery, Bitcoin is back above the $105,000 mark. Reclaiming its $2 trillion valuation, the biggest crypto has increased by 2.23% over the past 24 hours. Driving a new potential bull run, Bitcoin is hinting at a new all-time high.
Bitcoin Technical Analysis: Can BTC Break $105K for an Explosive Rally?
Bitcoin reveals three consecutive bullish candles, bouncing back from $101,000 to the 24-hour high of $105,563. This accounts for a 4.15% recovery.
As Bitcoin bounces off from the $98,750 support, the recovery run is challenging the 38.20% trend-based Fibonacci level at $105,372. With a current market price of $105,030, Bitcoin is facing opposition from a crucial resistance level.
However, a closing above this Fibonacci level will mark a potential breakout of a rounding bottom pattern. This will significantly increase the upside potential, with price targets at $112,375 and $116,085.
On the flip side, the $100,000 psychological zone remains a solid support followed by the $98,750 level.
Momentum & Trend Indicators
On the technical front, the Supertrend indicator reveals a bullish trend in motion. This increases the likelihood of a continued uptrend.
Strengthening the bullish sentiment, the momentum indicator reveals an uptick, supporting the ongoing uptrend. Hence, if broader market conditions sustain, Bitcoin could see a high-momentum move toward a new all-time high.
Institutional Support Strengthens as Bitcoin ETFs Record Net Inflows
With the recent surge in the crypto market and the dovish push from the FOMC, institutional support for Bitcoin is on the rise. On January 29, the daily total net inflow stood at $92.09 million.
Out of the 12 ETFs registered in the US market, only two maintained a positive flow. Grayscale bought $106.23 million worth of Bitcoin and Fidelity purchased $18.20 million in BTC.
On the bearish front, however, BlackRock offloaded $28.37 million in the market. Furthermore, Bitwise’s Bitcoin ETF saw a net outflow of $3.96 million.
While the majority of ETFs maintained a net zero flow, the overall positive flow reflects a recovery in the ETFs market.
Bitcoin Reserve Debate Gains Traction in the US
As institutional support rises, the discussion around a Bitcoin reserve in the US is intensifying. Adding to the debate, Cynthia Lummis, US Senator from Wyoming, has recently highlighted the growing need for a Bitcoin reserve. In a recent X post, she :
“If you are not first, you are last.”
“If you are not first, you are last.”
She suggests that the Trump administration must take quick action to establish a strategic Bitcoin reserve. A potential move ahead can be seen as a step toward securing US financial dominance in the 21st century.
Whale Activity Signals Market Repositioning
The Bitcoin landscape has witnessed massive shifts over the past 24 hours. Around 70 holding more than 1,000 BTC have either exited the network or redistributed their holdings. This was highlighted in a recent X post by Ali Martinez using Glassnode data.
Since mid-December, major players have been repositioning their portfolios, signaling a potential shift in market dynamics. While this could be seen as a risk-off positioning, it also suggests that big market players are adjusting to new trends.
Despite the redistribution of BTC holdings, Bitcoin price could likely witness high-momentum moves in the coming times.
