Bitcoin Poised to Recover to $105,000
Despite recent sharp declines, crypto analysts remain optimistic, predicting that Bitcoin ($BTC) will recover and climb to $105,000 in the near future.
December 9 and 19 saw significant drops in the crypto market, with Bitcoin failing to hold the critical $100,000 psychological level. However, positive signals are now emerging, suggesting a strong rebound post-holiday.
Analysts attribute the recent stagnation to the holiday season, citing lower liquidity due to reduced trading activity. According to experts, the return of institutional investors after Christmas is expected to drive Bitcoin back into a bullish trajectory.
Key Drivers of the Predicted Rally
Federal Reserve Policy: Optimism around potential dovish monetary decisions is supporting upward expectations.
Donald Trump's Presidency: His inauguration on January 20 is believed to influence markets positively, encouraging investments in crypto and other sectors.
Ryan Lee, Bitget Research’s chief analyst, stated that institutional players would return after the holiday, boosting market liquidity. He predicts Bitcoin will see another brief correction before reaching $105,000. Lee also highlighted that BTC’s trading range this week could span from $94,000 to $105,000.
Interestingly, despite the six-figure price forecast, Bitcoin ETFs in the U.S. have seen significant outflows, with over $338 million withdrawn on December 24. This divergence suggests that while confidence in the spot market is wavering, futures and institutional trades may dominate the next leg of Bitcoin’s rally.
Cautious Optimism Amid Prolonged Corrections
Crypto analyst Rekt Capital warned on December 24 that Bitcoin’s correction might extend further before a full recovery. With BTC trading below the $100,000 mark since December 19, the market remains in a delicate balance.
