The price of Bitcoin shows strong momentum again, rebounding nearly 2%, and is expected to break the $100,000 mark soon. Given a weekly increase of over 6%, analysts predict that BTC's correction may soon be over. Additionally, with Donald Trump set to be inaugurated in 15 days, investors can expect greater volatility in the future. U.S. CPI releases and other macro factors like the FOMC may play a key role in driving volatility.
Where will the price of Bitcoin go next?
Starting from Monday, Bitcoin enters its 10th week of price discovery, and analysts are closely watching the market's ability to confirm the end of the correction phase. According to Rekt Capital, BTC has effectively navigated the challenging 7th and 8th weeks with only a -15% slight pullback, far below the 30% drop seen in similar periods in 2017.
The analyst added that a weekly BTC closing price above the blue support area of around $97,907 may signal the end of the downtrend. However, to confirm an upward trend, the price of Bitcoin must approach the level of $100,970, as shown in the chart below. In a message on platform X, the analyst noted:
“Bitcoin has now returned to the previously lost support area, namely the blue order block ($97,000 to $98,000). If Bitcoin closes weekly within this blue area, then it is very likely to reclaim the previously lost support again.”
Will BTC soon break through $100,000?
A Bitcoin price closing above $100,000 is crucial for confirming an upward trend that could set a new high in 2025. Some market analysts believe this will not be a straight path and may bring some volatility in the future. Noted cryptocurrency analyst Benjamin Cowen stated:
“BTC's performance is exactly the same as a year ago. Essentially, it soared at the beginning of January, then fell at the end of January, and then rebounded more persistently in February.”
Similarly, 10x Research founder Markus Thielen hinted that Bitcoin prices would have a positive start in early January, but he added that Bitcoin prices might soon pull back before the CPI inflation data is released on January 15. The analyst believes that after Trump's inauguration, Bitcoin prices could rise again, followed by another pullback during the FOMC meeting. In a report from 10x Research, Thielen wrote:
“Favorable inflation data may reignite optimism and drive the stock market up before Trump's inauguration. However, this momentum may weaken, and the market could pull back ahead of the FOMC meeting on January 29.”
As of the time of writing, the price of BTC is up 1.12% to $99,790. According to Coinglass data, open interest has only increased by 2.7% to $57.84 billion, indicating that interest in the derivatives market and futures remains limited. Additionally, the 24-hour liquidation amount has surged to $25.5 million.
