TL;DR
- Bitcoin surged from below $90K to briefly surpass $100K, driven by bullish momentum and CPI data. Analysts predict further gains, with some expecting a new all-time high and an “euphoria phase” for the market.
- Positive exchange netflows and an RSI above 70 suggest potential selling pressure and overbought conditions, signaling a possible short-term correction.
New ATH Incoming?
Bitcoin (BTC) once again proved its volatile nature in the past several days. It was trading at around $94,000-$95,000 during the weekend, but the bears stepped in at the start of the business week, suppressing the valuation below $90,000 for the first time since November last year.
As it turned out, though, this was just a momentary plunge, and the price started climbing exponentially in the following days. On January 15, BTC soared above $98,000 following the latest CPI data released by the US Labor Department. The bulls continued to prevail, and the asset briefly surged past $100K on January 16. In the next hours, BTC slightly retraced and is currently worth around $98,000 (per CoinGecko’s data).
Crypto X is full of analysts who noticed the impressive price resurgence and predicted further gains in the near future. Captain Faibik envisioned a new all-time high by late January, while JAVON MARKS expects “a massive breakout.”
The latter noted a specific “flag breakout” on the price chart, maintaining that the last time this happened, BTC skyrocketed by over 70% in nearly a month.
Mikybull Crypto chipped in, too. The analyst suggested that surpassing the resistance level of around $99K could initiate “the thrill and euphoria” psychological market phase.
“This is the phase where everything pumps, especially alts,” they added.
A Potential Correction?
Contrary to the bullish predictions, some metrics signal that the primary cryptocurrency could lose some steam in the short term. According to CryptoQuant, the BTC exchange netflow has been predominantly positive in the past seven days. This indicates a potential shift from self-custody methods toward centralized trading platforms, which could be considered bearish since it increases the immediate selling pressure.
Another factor worth touching upon is BTC’s Relative Strength Index (RSI), which earlier today (January 16) surpassed 70. Such a high level suggests the asset might be overbought and headed toward a possible pullback.
On the contrary, any readings below 30 could be interpreted as a bullish sign.
