Bitcoin [BTC] has returned to the critical $100,000 level, sparking intense speculation about its next major move. There are divisions in the market: some believe the recent surge is a sign of cautious optimism, while others see it as driven more by hype than solid fundamentals.
On the other hand, the increasing number of large HODLers indicates a strong accumulation phase, with many believing the current price is a potential bottom.
As the New Year atmosphere heats up, this lays the groundwork for a significant breakthrough.
So, with risks higher than ever, can Bitcoin deliver on its promise to reach new all-time highs by the end of the fourth quarter?
Bitcoin shows signs of being undervalued.
Several key factors are currently at play. Internally, volume data indicates Bitcoin is moderately undervalued, while the RSI remains neutral.
The MACD line is approaching a bullish crossover, and the CMF remains positive.
From an external perspective, economic and psychological dynamics are lining up, suggesting that a bottom is forming.
Historically, breakthroughs often occur when the network is undervalued—and now, the NVT ratio confirms this perspective.
As NVT drops to a two-month low, Bitcoin's price seems to be outpacing 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 excessively obvious impact of high leverage in the derivatives market.
A confirmed bottom could lay the groundwork for squeezing short positions—but this will only occur if whales and large HODLers continue to drive buying momentum.
Strategies that bulls must follow when Bitcoin surges.
In the past 24 hours, Bitcoin has 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, with major holders betting on Bitcoin’s rise, open interest (OI) has surged nearly 6% to $64 billion. This surge may 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 prices from dropping below $90,000, thus offsetting the pressure.
Now, as large holders and institutional investors recognize Bitcoin's undervaluation, a wave of shorts being squeezed out of the market seems inevitable.
If large companies continue to buy on dips, a new all-time high may be just around the corner, ready to shatter expectations.
