Bitcoin price outlook: Resilience above $100K as Binance drives liquidity
BTC nears ATH, supported by key levels and market shifts
Bitcoin’s resurgence past the $100,000 mark this week highlights shifting liquidity dynamics and key technical indicators. As the cryptocurrency eyes its all-time high of $103,500, a combination of broader exchange participation and robust price levels forms the backbone of its bullish trajectory.
Following an earlier dip from $101,000 to $94,000 on Monday, Bitcoin reclaimed the $100,000 milestone on Wednesday with a 7% surge to a six-day high. This recovery was not just a technical bounce but also reflected evolving liquidity trends. According to CryptoQuant analyst Mignolet, Coinbase, which had been instrumental in the initial phases of Bitcoin’s rally earlier this year, has seen its dominance wane. This shift coincided with the approval of Bitcoin exchange-traded funds (ETFs), which temporarily boosted Coinbase’s trading activity.
Bitcoin spot trading volume. Source: CryptoQuant.
However, as the rally progressed, Binance emerged as a dominant force in sustaining Bitcoin’s upward momentum. The analyst noted that Binance’s growing role signifies a broader distribution of liquidity, pointing to increased institutional and retail participation. This decentralization strengthens market resilience, making Bitcoin less reliant on any single exchange.
Technical support levels fuel Bitcoin outlook
Bitcoin’s rebound from $94,000 was supported by key technical levels, including the 200-day EMA and the bullish channel support at $95,000. These factors provided a strong foundation for the price recovery. Currently, Bitcoin is holding above the critical psychological support at $100,000, which could act as a springboard for further gains.
The RSI, hovering near 70, indicates strong momentum without signaling overbought conditions. Meanwhile, the $103,500 resistance, the current all-time high, remains a crucial hurdle. A successful breakout above this level could pave the way for a new bullish phase.The convergence of liquidity trends and technical indicators paints a promising picture for Bitcoin’s near-term outlook. Binance’s dominance and the diversification of liquidity sources bolster market confidence, while strong support levels and measured momentum set the stage for potential upward moves.
Bitcoin price drop was a silver lining, flushing out excessive retail leverage. Its funding rate, which peaked at 9% per month on December 5, went flat after the decline.
