Bitcoin gained over 4% on Tuesday, surging from $102,155 to a high of $106,606. It led the crypto market as it entered day 2 of the Trump administration.
Nonetheless, many assets joined the bullish trend, sending the global cryptocurrency market cap to $3.60 trillion. It also registered a more than 10% increase in trading volume. The fear and greed index improved in response to the positive change.
The positive consumer price index report on Jan. 15 released investors from fears of another downtrend before Jan. 20. The Core CPI annual rate was at 3.2%, down by 0.1 from the previous forecast. The market responded positively to the reading.
Bitcoin broke out from its head and shoulders pattern as buying pressure increased. It surged from $96,560 to $100,715, gaining over 4%. Its over 4% increase during the previous intraday session marks a critical point in the uptrend.
Price action at the time of writing remains bullish. Currently trading at $103k, there is growing uncertainty about the following actions.
Onchain Data Remain Positive
The apex coin is up 4% and showing notable bullish action. Data from CryptoQuant points to a noteworthy outflow of assets into exchanges. These platforms saw 20 times the number of coins move out in the last 24 hours compared to Jan.20.
The latest readings show that investors from several regions are considerably optimistic on the asset. The Coinbase Premium is positive, as US investors show more substantial buying pressure. South Korean traders show a similar sentiment, as indicated by the positive Korea premium. Exchange-traded funds are seeing a notable inflow.
At the time of writing, the exchange reserves are gradually reducing. They dropped by 0.11% in the last 24 hours, continuing the seven-day bullish trend. The number of active addresses grew by over 180% in the previous 24 hours, as transactions multiplied twofold.
The derivatives market is teeming with activity as funding rates slightly increase. It is significantly bullish, as the taker buy-sell ratio is above 1. The bears are losing notable figures, as liquidations from short positions exceeded $70 million in the last 24 hours. The sectors show more buy orders filled.
Is Bitcoin Clear for More Uptrend?
Other on-chain indicators hint at impending price declines. The Binary CDD, which shows long-term holders’ behavior, is negative. This means that more such investors are moving assets, mostly from cold storage, into exchanges, which may result in selling pressure for the asset in the coming days.
The number of traders selling off their assets slightly increased in the last 24 hours. The latest reading comes as the number of addresses with unrealized profit grew. Miners continue dumping with a notable increase in revenue, which may encourage more selling pressure.
BTC Risks Dipping Below $100k
Bitcoin must continue its uptrend or risk massive declines. It trades above the Bollinger bands, which is a bearish sign. An asset only attains this mark during the peak of an uptrend. The apex coin lost over 3% during the previous breakout and dipped by over 10% earlier in January following that event.
Previous price movement suggests that the asset may dip below $100k. The Fibonacci retracement level points to a possible dip to the 23% fib mark at $96k before rebound.
The apex coin will break above $110k. However, the ongoing momentum may not be sufficient to trigger such a push. Further improvements to trading conditions guarantee this milestone.
