After experiencing a pullback before Christmas, Bitcoin (BTC) finally welcomed a rebound, breaking through the $98,000 mark, bringing a "green Christmas gift" to global Bitcoin bulls.
On December 24, with the opening of Wall Street, Bitcoin's price, driven by strong spot buying, broke through the psychological barrier of $98,000, reaching a peak of $99,487.
Data from TradingView shows that Bitcoin hit a new high of $98,020, refreshing recent trading records. As Bitcoin's price rises over $5,000, discussions about the Christmas rally in the market are heating up again, with investors keenly focusing on future trends.
The strong buying in the spot market played a decisive role behind this rebound. The well-known X account Exitpump expressed optimism about this trend, believing that Bitcoin might welcome a "Christmas rebound." He stated: "BTC spot buyers are emerging in large numbers, LFG!" and accompanied it with a chart displaying exchange order data, further validating the current market buying pressure.
According to the latest data from CoinGlass, in the past 24 hours, the amount of BTC shorts being liquidated approached $40 million, while the total liquidation amount in the crypto market exceeded $150 million. Such large-scale liquidation phenomena also indicate that the short sentiment in the market is gradually fading, with more investors beginning to turn to bullish sentiment.
Technical Analysis: The next key resistance level is at $98,500
From a technical perspective, after breaking through $98,000, Bitcoin's price faces key resistance levels. We have already surpassed the first VWAP resistance level (green arrow). If we can break through the critical resistance of $98,500, Bitcoin is expected to surpass its historical high and move further upward.
At the same time, the chart also shows a rebound in the Coinbase premium, reflecting the increasing buying pressure during U.S. trading hours. As the premium rises, the market's optimistic sentiment is also continuously accumulating, further supporting the upward momentum.
Analyst's View: Cautiously optimistic, need to be wary of potential risks
Despite the overall optimistic market sentiment, some analysts have raised cautionary voices. Notable trader Rekt Capital pointed out in his latest report on X that while Bitcoin shows signs of a rebound, attention must still be paid to the changes in support levels. He stated: "Yesterday, after a rebound, Bitcoin's price nearly fell to a new low. Today, Bitcoin has rebounded again and returned to the original support level. Overall, as long as the lost support level turns into a new resistance level, further downside risks may still arise."
He further added that if Bitcoin can reclaim the previously lost support level, it would be a significant bullish signal, and the market could potentially move further upward.
Market Outlook: A 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 continued buying in the spot market, Bitcoin is expected to see 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 successful, a breakthrough of the historical high is just around the corner, and market investment sentiment will further heat up.
