The crypto market today sees Bitcoin (BTC) surge past $100,000, catching people’s interest as a result. This major psychological level has revived investors’ hope after prices stagnated at a particular range. However, not all traders are throwing jubilance into the rally because of string factors in the market.
Bitcoin Price Crosses $100K Amid Market Rally
According to market statistics, it rose by 3.91% on Monday from $98,340 to $102,185. This rally boiled up altcoins and set up a higher pace for the overall cryptocurrency market. Nevertheless, the bullish move is struggling around the 161.8% Fibonacci retracement at $102,306 which is a magnet for bearish reversal traders.
This key level remains watchful by the traders as it is evident on the hourly BTC/USDT chart. The sharp increase in the open interest also contributes to the further aggravation of the prospects of the market. TradingRiot analyst Adam said, “If open interest gains momentum, either the buyers or the sellers tend to be shaken out before a continuation.”
U.S. Dollar Index and Fractals Fuel Caution
Nonetheless, the trading fraternity is closely watching Bitcoin’s run-up and the U.S. dollar index (DXY). As such, any fall in DXY is usually associated with an increase in risk-on assets such as Bitcoin. Crypto analyst BluntzCapital expressed his opinion on the DXY chart revealing that if DXY goes below 99, the correction will be beneficial to Bitcoin.
But as the analyst also pointed out earlier, both Bitcoin and equities maintained the highest level during the recent bounce of DXY indicating an emerging market chaos. Bitcoin price visualization from early 2025 fractals means that BTC could come back to sweep December lows in 2024 before rum for a rise. Analyst and trader ImmortalCrypto points out this statement coming from traders, stating that it has been extending its patterns tracing from May 2024.
Market Sentiment and Liquidation Risks
It has also caused more trading activities this week; short squeezes stood at $130 million according to CoinGlass. This is optimistic and suggests that if the Bitcoin price turns south the whole market will be in a serious liquidation mode.
Edul Patel, Chief Executive Officer at Mudrex said, “BTC spot ETFs added $759 million of inflows, which is built upon $900 million from the previous trading session to push Bitcoin to the six figures figures.” Also, political expectations, such as Poilievre, a Canadian candidate, assuming leadership, have given an overall positivity in the market.
Sometimes other altcoins such as Ai16z, Worldcoin, and Render have risen because of the improving Bitcoin trend. However, these asset prices still depend on correction in case BTC experiences a poor run.
Broader Market Outlook
A new year means new hopes for Bitcoin as its price swings into the six-figure zone for the first time since December 2024. Bitcoin is at $101,780 with an intra-day high of $102,712.
The market continues to observe the trends with the traders beginning to be hopeful but still assessing areas of the resistance levels and the other features in the overall market. The future trading price action will, therefore, hinge on the capacity of Bitcoin to maintain this run and hurdle through the resistance level of around $102,306.
Some of the important factors that are likely to feature significantly and potentially drive the cryptocurrency in the foreseeable weeks are ETF inflows and changes in the global market sentiment as they continue to occur.
