Before Christmas, Bitcoin experienced a round of pullback, but finally rebounded and the price broke through $98,000, giving Bitcoin bulls around the world a "green Christmas gift."
On December 24, as Wall Street opened, Bitcoin broke through $98,000 driven by strong spot buying, and even rose to $99,487 at one point.
Data shows that Bitcoin hit a new high of $98,020, breaking the recent trading record. As the price of Bitcoin rose above $5,000, discussions about the Christmas rally in the market heated up again, and investors began to pay attention to future trends.
Behind this rebound, strong buying in the spot market is the key factor. The well-known account Exitpump is optimistic about this trend and believes that Bitcoin may usher in a "Christmas rebound." He said in his comment: "BTC spot buyers emerge, LFG! (Let's F***ing Go)!" and shared a chart showing exchange order data, further proving the current market buying pressure.
According to the latest data from CoinGlass, the amount of forced liquidation of Bitcoin (BTC) shorts in the past 24 hours was close to $40 million, and the total liquidation of the entire crypto market has exceeded $150 million. This large-scale liquidation phenomenon shows that the bearish sentiment in the market is gradually fading, and more and more investors are turning to bullish sentiment.
From a technical perspective, the next key resistance level is $98,500
From a technical perspective, Bitcoin is currently facing a critical resistance level after breaking through $98,000. We have successfully broken through the first VWAP resistance level (green arrow). If we can break through this important point of $98,500, Bitcoin is expected to challenge the historical high and rise further.
At the same time, the chart shows that the Coinbase premium has rebounded, indicating that buying pressure is gradually increasing during the US trading session. As the premium rebounds, market optimism is also accumulating, providing strong support for further gains in Bitcoin.
Analysts’ view: Maintain a cautiously optimistic attitude overall, but still need to be vigilant about potential risks
Although the overall market sentiment is optimistic, some analysts have voiced caution. Rekt Capital, a well-known trader, pointed out in his latest X report that although Bitcoin showed signs of rebound, it is still necessary to pay attention to changes in support levels. He mentioned: "Yesterday, Bitcoin rebounded and the price almost fell to a new low. Today, Bitcoin rebounded again and returned to the original support level. Overall, as long as the lost support level becomes a new resistance level, there may still be further downside risks."
He also added that if Bitcoin can retake the previously lost support level, it will be a clear positive sign and the market may rise further.
Market outlook: a breakthrough rise is possible
Despite certain downside risks, Bitcoin's rebound seems to be accumulating more upward momentum in the current market environment. If Bitcoin can break through the $98,500 resistance level and stabilize above this price, the market is likely to usher in a strong upward trend. With the intensification of short liquidation and continued buying in the spot market, Bitcoin is expected to usher in a breakthrough rise in early 2024.
In the next few days, the market will continue to pay attention to whether Bitcoin can break through this key technical level. If the breakthrough is successful, the breakthrough of the historical high will be just around the corner, and the investment sentiment of the market will be further heated up.