Bitcoin [BTC] has returned to the critical $100,000 level, sparking strong speculation about its next major move. There is division in the market: some believe the recent surge is a cautiously optimistic sign, driven more by hype than solid fundamentals.
On the other hand, the increasing number of large HODLers suggests a strong accumulation phase, with many believing the current price represents a potential bottom.
With the New Year spirit heating up, this lays the foundation for significant breakthroughs.
So, with risk higher than ever, can Bitcoin fulfill its promise of reaching an all-time high by the end of the fourth quarter?
Bitcoin shows signs of being undervalued.
Currently, several key factors are at play. Internally, trading volume indicates Bitcoin is moderately undervalued, while the RSI remains neutral.
The MACD line is approaching a bullish crossover, and the CMF remains positive.
From the outside, both economic and psychological dynamics are lining up, suggesting a bottom is forming.
Historically, breakthroughs often occur when the network is undervalued—and now, the NVT ratio confirms this view.
As NVT falls to a two-month low, Bitcoin's price seems to exceed its network activity. This marks a potential buying opportunity, especially for large HODLers looking to profit from low prices.
But here's the problem: over the past two weeks, whales have been actively buying every dip, effectively preventing any significant pullback.
However, despite their efforts, the price trend remains sluggish due to the obvious impact of high leverage in the derivatives market.
A confirmed bottom could lay the groundwork for squeezing short positions—but this will only happen if whales and large HODLers continue to drive buying momentum.
Strategies that bulls must follow when Bitcoin surges.
In the past 24 hours, Bitcoin surged to the $101,000 mark after experiencing a week of selling pressure, triggering a massive short squeeze.
Over $170 million in short positions have been liquidated, with the largest order coming from Binance—up to $5.31 million in BTC/USDT.
Moreover, as major holders bet on Bitcoin's rise, open interest (OI) has surged nearly 6%, reaching $64 billion. This spike could be an ideal time for investors to consider entering the market in anticipation of a potential rebound.
What's the reason? Recent adjustments forced long positions to close, but whales successfully prevented the price from dropping below $90,000, offsetting the pressure.
Now, as large holders and institutional investors find Bitcoin undervalued, a wave of shorts being squeezed out of the market seems inevitable.
If big companies continue to buy on dips, a new historical high may be just around the corner, ready to break expectations.
