As the cryptocurrency market enters the first full trading week of 2025, Bitcoin (BTC) bulls are rapidly advancing towards the psychological level of $100,000, further intensifying trading activity.
With the change in trading dynamics, it is observed that the interest of retail investors has decreased. However, strong price movements create opportunities for institutional investors and experienced traders.
“Investors are closely monitoring the $100K level and various trading strategies are being developed for potential liquidity opportunities,” COINOTAG noted in a recent analysis.
Bitcoin Approaches $100,000 Target
Bitcoin’s current market performance is supported by a strong weekly close around $98,300. These highs just below $100,000 are fueling bullish sentiment among traders. Data from Cointelegraph Markets Pro and TradingView show that BTC/USD is continuing its strong rally, last reaching $99,857 on Bitstamp, its highest since December 26, 2024.
Market analyst Aksel Kibar noted important price target levels, saying, “The long-term price chart of $BTCUSD is forming a cup and handle formation that points to a target of $137,000.” Trader SuperBro, on the other hand, identifies the 10-week simple moving average (SMA) as a critical technical level and predicts that BTC could move higher if this level is confirmed as support.
Market Sentiment: Diverse Views on Bitcoin’s Direction
The recent pressure on Bitcoin has raised concerns about a “deeper correction.” Analysts who were previously bullish are taking a cautious approach based on historical patterns. “The possibility of a Death Cross looms on the horizon; if critical support levels are broken, further declines could follow,” said Keith Alan, co-founder of Material Indicators, adding that they are following this situation closely.
This view reflects broader market concerns as Bitcoin struggles to hold onto gains, with analysts noting that the 21-day moving average at $96,957 should be closely monitored for potential price declines.
Macroeconomic Indicators and Retail Participation
The interaction of cryptocurrency trading with macroeconomic factors continues to be a major focus for investors. Inflation concerns and the Federal Reserve’s interest rate policies suggest that market volatility will continue. Additionally, upcoming labor market reports, particularly the latest jobless claims and the December employment report, are among the factors expected to influence trading sentiment.
Despite all these fluctuations, it is observed that retail investor participation is decreasing. On-chain data reveals a significant decrease in the trading volume of retail investors. “The disappearance of the retail sector after passing the $108,000 level indicates a fundamental change in market dynamics,” commented a CryptoQuant contributor. With the decrease in retail investment, institutions are taking advantage of this gap and are trying to have more influence on the market.
