Bitcoin briefly reclaimed $100K after a major sell-off. With funding rates flipping negative, could BTC surge to a new all-time high of $123K?
Bitcoin Recovers After $8B Liquidation—What’s Next?
After a sharp sell-off on Monday, Bitcoin (BTC) plunged, wiping out over $8 billion across the crypto market. However, BTC rebounded 12.35% to hit $102.5K, before settling at $98,718 today.
With funding rates flipping negative, a potential recovery rally may be on the horizon. Let’s analyze Bitcoin’s price trends and key resistance levels.
Funding Rate Signals a Bullish Bitcoin Outlook
The funding rate plays a crucial role in Bitcoin’s price action. It represents the fee paid between long and short traders to maintain parity between perpetual contracts and spot prices.
- Positive funding rates signal bullish sentiment.
- Negative funding rates indicate bearish pressure.
Historically, when Bitcoin’s funding rate turns negative, BTC tends to reverse course and rally. If this pattern holds, Bitcoin could soon reclaim higher levels.
Bitcoin Price Analysis: Can BTC Break Resistance?
Despite recent volatility, Bitcoin’s bullish trend remains intact. BTC briefly dipped to $92.5K but managed to close above a key support at $97.2K. As long as bulls defend this level, the uptrend could continue.
The next major resistance lies between $101.4K and $105.5K. If BTC breaks through, it could retest the $110K all-time high (ATH). Beyond this level, Bitcoin may surge to $123K, aligning with the 161.8% Fibonacci extension of its recent uptrend.
A similar price fractal occurred between November 14-23, 2024, when Bitcoin hit an ATH of $108.3K. This setup suggests another potential breakout.
Key Levels to Watch: Buy and Profit Zones
Bitcoin’s next crucial price levels to watch:
✅ Resistance Levels:
- $101.4K – $105.5K → Key range before BTC challenges ATH.
- $110K → Breaking this could lead to new highs.
- $123K → Potential new ATH based on Fibonacci projections.
🔻 Support Levels (Buy Zones):
- $97.2K → Must hold for bullish continuation.
- $92.5K, $89K, $85.8K → Strong historical supports for dip buyers.
