Bitcoin (BTC) Price Analysis for January 2: BTC Preparing For A Monster Rally

Bitcoin price analysis suggests a monster rally is brewing as BTC price reclaims the $100K mark. After forming a higher high on the 4-hour timeframe, some analysts predict a potential top at $108,300.

However, on-chain data and expert insights indicate a more extended bullish trend might be on the horizon.

Bitcoin price set to rally after reclaiming $100K

After a brief consolidation period, Bitcoin price appears to be gearing up for a significant rally. Reclaiming the psychologically crucial $100K mark is a bullish sign, and BTC price has established a higher high on the 4-hour timeframe.

This breakout signals a potential trend reversal after a period of ranging price action.

As Bitcoin continues its ascent, some analysts are predicting a potential top for this leg of the rally. Based on the Fib extensions, a level to watch is $108,300, which aligns with the 141.4% Fib extension. Resistance at this level could indicate a potential turning point for BTC price.

Highlighting a key aspect of the recent market動き, CryptoQuant analyst Axel Adler points out an interesting detail.

The recent outflow from US Bitcoin ETFs, observed since December 20, might be a temporary anomaly due to the holiday period rather than a fundamental change in investor sentiment.

This observation helps alleviate concerns regarding weakened institutional interest, suggesting that BTC’s upward momentum may still have room to continue.

Adding to the optimism, CryptoQuant CEO Ki Young Ju has suggested that this Bitcoin bull cycle might become the longest ever.

He attributes this potential longevity to the steady influx of new liquidity sources and the promise of additional capital waiting to be unlocked. This steady injection of funds has historically fueled sustained growth in BTC, creating a fertile environment for price expansion.

As BTC price consolidates its position above $100K, these bullish signals indicate a market primed for continued gains. Investors are now watching to see if BTC price can overcome near-term resistance and extend its upward trajectory.

Bitcoin price eyes a move above ATH

After a decisive breakout, Bitcoin price is trading at $100,800, pushing the price to a high of $102,760. This move strengthens BTC’s long-term bullish structure, highlighting its potential for further gains.

Currently, BTC price is retesting the psychologically crucial level of $100K, which is also significant in maintaining momentum. Bulls will be looking to gather the necessary fuel to drive BTC past its all-time high.

This retest serves as a critical juncture for BTC, as holding above $100K would confirm the strength of the bullish trend and position BTC for a massive rally. Investors and traders are keeping a close watch on this level, recognizing its psychological and technical importance. Breaking past this consolidation zone could pave the way for BTC to target new highs with increased confidence.

However, if BTC fails to hold the $100K level as support, it risks entering a prolonged consolidation phase. Such a scenario could dampen short-term enthusiasm and shift market sentiment toward caution. Maintaining control above this key level is essential for bulls to solidify their dominance and set the stage for the next leg of the bull market.