Bitcoin’s Price Soars Past $100K: What Lies Ahead?

TL;DR

Bitcoin jumped from below $90K to briefly exceed $100K, propelled by optimistic momentum and CPI data. Analysts anticipate additional increases, with some forecasting a new all-time peak and an “euphoria phase” for the market.
Positive netflows on exchanges and an RSI above 70 indicate potential selling pressure and overbought situations, hinting at a possible short-term correction.

New ATH Ahead?

Bitcoin (BTC) has once again showcased its erratic nature in the last few days. Over the weekend, it was trading around $94,000-$95,000, but at the start of the business week, the bears entered, driving the value below $90,000 for the first time since November of the previous year.

However, this was merely a temporary dip, and the price began to rise dramatically in the subsequent days. On January 15, BTC leaped over $98,000 after the latest CPI figures were published by the US Labor Department. The bulls continued to dominate, with the asset briefly exceeding $100K on January 16. In the following hours, BTC slightly pulled back and is currently valued at approximately $98,000 (according to CoinGecko’s data).

Crypto X is brimming with analysts who have observed the remarkable price rebound and foresee further increases in the near term. Captain Faibik predicted a new all-time peak by the end of January, while JAVON MARKS anticipates “a significant breakout.”

The latter highlighted a specific “flag breakout” on the price chart, asserting that the last time this occurred, BTC soared by over 70% within roughly a month.

Mikybull Crypto added his perspective as well. The analyst noted that breaking the resistance threshold of around $99K could trigger “the excitement and euphoria” psychological market phase. 

“This is the phase where everything surges, particularly alts,” they commented.

Is a Correction on the Horizon?

In contrast to the optimistic forecasts, certain metrics indicate that the leading cryptocurrency may lose some momentum in the near term. According to CryptoQuant, the BTC exchange netflow has been primarily positive over the past week. This implies a possible transition from self-custody methods towards centralized trading exchanges, which could be regarded as bearish as it heightens the immediate selling pressure.

Another element worth considering is BTC’s Relative Strength Index (RSI), which earlier today (January 16) exceeded 70. Such a high reading suggests that the asset may be overvalued and could be heading for a potential decline.

Conversely, any readings below 30 could be seen as a bullish indicator.