Bitcoin price 12% weekly surge reclaims $100k amid risk-on sentiment
BTC eyes $102.7K resistance after a 12% rally this week
Bitcoin price surge this week has culminated in over 12% to reclaim the critical $100,000 level during the late American session on Wednesday. However, the rally is showing signs of hesitation in Thursday trading sessions, as price pullback slightly below $100,000.
A closer look at the data reveals how macroeconomic developments and market indicators are shaping Bitcoin's price trajectory.
The price surge followed a bullish shift in macroeconomic sentiment, spurred by lower-than-expected US core inflation in December. The Consumer Price Index report prompted optimism that rate cuts might come into play in 2025, fueling risk-on market appetite. Within a few hours of the CPI release, Bitcoin Open Interest (OI) on Binance surged by 3.30%, climbing to $10.96 billion. This metric, which measures the total value of unsettled Bitcoin derivative contracts, highlights renewed trading activity as price also surged correspondingly.
Bitcoin price prediction: Consolidation looms as RSI eases from overbought
BTC price dynamics (December 2024-January 2025). Source: TradingView.
Despite the upward momentum, Bitcoin's rally has encountered resistance at $100,000, a level that could act as a pivotal threshold for further price action. In thursday’s Asian trading session, Bitcoin retraced slightly, and during the European session, it is trading at $99,600. Technical indicators point to potential consolidation, due to the 4-hour Relative Strength Index (RSI) easing from overbought conditions while remaining in bullish territory.
For now, traders are eyeing the January high of $102,700 as the next resistance level. A breakout above this mark could pave the way for an all-time high in 2025, while failure to hold above $100,000 might lead to a pullback. The coming sessions will likely provide more clarity on the next direction for the cryptocurrency market leader. Investors will watch closely to see whether Bitcoin can sustain its recent momentum or whether resistance levels will stall the rally.
Bitcoin surged to an eight-month high of $97,500 after recovering from an eight-week low of $89,000. Analysts described the temporary dip at 8-week low as ‘stop hunt’.
