After a pullback before Christmas, Bitcoin (BTC) has finally welcomed a rebound, with its price breaking through the $98,000 mark, bringing 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, driven by strong spot buying, reaching a high of $99,487.
Data from TradingView shows that Bitcoin has reached a new high of $98,020, setting a new trading record. As Bitcoin's price rises by more than $5,000, discussions about the Christmas rally in the market are heating up again, and investors are starting to pay attention to future trends.
Behind this rebound, the strong buying in the spot market has played a decisive role. The well-known X account Exitpump expressed optimism about this trend, believing that Bitcoin may welcome a 'Christmas rebound.' He stated: 'BTC spot buyers are pouring in, LFG!' and accompanied it with a chart showing exchange order data, further validating the current market's 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. This large-scale liquidation phenomenon also indicates that the bearish sentiment in the market is gradually fading, and more investors are beginning to turn towards bullish sentiment.
Technical analysis: the next key resistance level is at $98,500.
From a technical perspective, Bitcoin's price is facing a key resistance level after breaking through $98,000. We have currently broken through the first VWAP resistance level (green arrow). If we can break through the key 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 an increasing buying pressure during the US trading hours. As the premium rises, the market's optimistic sentiment is also continuously building up, further supporting the upward momentum.
Analyst opinion: cautiously optimistic, but potential risks must be watched.
Although the overall market sentiment is optimistic, some analysts have raised cautionary voices. Renowned trader Rekt Capital pointed out in his latest report on X that although Bitcoin shows signs of rebound, attention must still 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 turns into a new resistance level, further downside risks may still occur.'
He further added that if Bitcoin can regain the previously lost support level, it would be a significant bullish signal, and the market may move further upward.
Market outlook: a breakthrough rise may be on the way.
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 level, the market may welcome a strong upward trend. With increased short liquidations and continued 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 the breakthrough is successful, the breakout of the historic high is imminent, and the investment sentiment in the market will further heat up.
