After a pullback before Christmas, Bitcoin (BTC) has finally welcomed a rebound, breaking through the $98,000 mark, providing a 'green Christmas gift' to global Bitcoin bulls.
On December 24, as Wall Street opened, Bitcoin's price broke through the psychological barrier of $98,000 under the strong buying pressure in the spot market, reaching a high of $99,487.
Data from TradingView shows that Bitcoin reached a new high of $98,020, setting a new trading record recently. As Bitcoin's price rises over $5,000, discussions about a Christmas rally in the market are heating up again, with investors starting to pay attention to future trends.
Behind this rebound, the strong buying in the spot market played a decisive role. The well-known X account Exitpump expressed optimism about this trend, believing that Bitcoin may experience a 'Christmas rebound.' He stated: 'BTC spot buyers are surging, LFG!' and accompanied this with a chart showing exchange order data, further validating the current market's buying pressure.
According to the latest data from CoinGlass, nearly $40 million in BTC shorts were liquidated in the past 24 hours, while the total liquidation amount in the cryptocurrency market exceeded $150 million. Such large-scale liquidation also indicates that short sentiment in the market is gradually fading, with more investors beginning to shift towards bullish sentiment.
Technical analysis: the next key resistance level is at $98,500.
From a technical perspective, Bitcoin's price is facing key resistance after breaking through $98,000. We have already surpassed the first VWAP resistance level (green arrow). If we can break through this key resistance at $98,500, Bitcoin is expected to surpass its historical high and move further upwards.
Meanwhile, the chart also shows that the Coinbase premium has rebounded, reflecting increasing buying pressure during U.S. trading hours. As the premium rises, market optimism is also steadily building, further supporting the upward momentum.
Analyst's view: cautiously optimistic, need to be wary of potential risks.
Although market sentiment is generally optimistic, some analysts have raised cautionary voices. Notable trader Rekt Capital pointed out in his latest X report that although Bitcoin shows signs of rebound, attention must be paid to changes in support levels. He stated: 'Yesterday, after the rebound, Bitcoin's price nearly 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, further downside risk may still occur.'
He further added that if Bitcoin can reclaim the previously lost support level, it would be a significant bullish signal, and the market may further ascend.
Market outlook: a possible breakthrough rise may be on the horizon.
Despite certain downside risks, Bitcoin's rebound seems to be gathering more upward momentum in the current market environment. If Bitcoin can break through the resistance level of $98,500 and stabilize above this price, the market may welcome a strong upward trend. With the intensification of short liquidations and continuous buying in the spot market, Bitcoin is expected to experience a breakthrough rise in early 2024.
In the coming days, the market will continue to focus on whether Bitcoin can break through this key technical level. If it successfully breaks through, the breakthrough of the historical high is just around the corner, and market investment sentiment will further heat up.
