As Bitcoin (BTC) edges closer to the psychological $100,000 level, bullish momentum is building in the crypto market. Trading at $98,000, Bitcoin has gained 4.56% in the past 24 hours, with a market cap approaching $2 trillion.
Amidst this recovery, investors are speculating whether BTC will breach the $100K barrier before New Year’s Eve 2025.
Let’s explore the technical and market factors driving this potential rally.
BTC Price Analysis
Double-Bottom Reversal
Bitcoin’s price action on the 4-hour chart reveals a double-bottom reversal pattern, originating from the crucial $93,000 support level.
This bullish pattern has propelled BTC above $97,000, accompanied by a morning star candlestick pattern on the daily chart.
Currently, BTC is testing the neckline of this reversal at $99,000. A breakout from this level could pave the way for a substantial rally.
Technical Indicators
Several indicators support the bullish outlook:
- EMA Crossovers: A positive crossover between the 20 and 200 EMAs signals strengthening bullish momentum.
- RSI Movement: The RSI has crossed above the halfway mark, reflecting increased buying pressure.
- Current Range: BTC is trading between the 50 and 100 EMAs, hinting at further upward movement.
Resistance and Support Levels
| Price Level | Significance |
|---|---|
| $99,000 | Neckline of the double-bottom |
| $102,557 | Near-term bullish target |
| $96,293 | Support at the 200-day EMA |
Market Trends
Institutional Activity
While Bitcoin’s price momentum is positive, institutional participation remains subdued. Spot Bitcoin ETFs in the U.S. have recorded a fourth consecutive day of negative net flows, with a total outflow of $338.38 million on December 24.
- BlackRock: Outflow of $188.71 million
- Fidelity: Outflow of $83.16 million
The declining net assets, now at $110 billion, highlight reduced institutional support.
Liquidation Trends
As BTC rallies, the crypto market has seen significant liquidations, amounting to $252.67 million in the last 24 hours. Notably:
- Short Liquidations: $149.46 million
- Long Liquidations: $103.22 million
The liquidation data suggests shifting market sentiment in favor of the bulls.
Price Outlook
Bullish Scenario
If Bitcoin successfully breaks past the $99,000 neckline, it is likely to target $102,557. This level represents the next major resistance and could act as a stepping stone toward $100,000 and beyond.
Bearish Scenario
Failure to sustain the bullish momentum could see BTC retesting the 200-day EMA at $96,293.
Bitcoin’s journey toward $100K is gaining momentum, driven by a double-bottom reversal and improving technical indicators.
While the short-term outlook is bullish, challenges such as subdued institutional activity and resistance at $99,000 remain. If BTC can sustain its upward trajectory, surpassing $100,000 before 2025 appears within reach.
