Bitcoin investors and traders often try to predict market movements, but it's not an easy task. Let's explore the possibility of Bitcoin reaching $110k.
Exploring Bitcoin Chart
At the time of writing, Bitcoin is trading at $98,268, just 0.08% up compared to the last 24 hours. The price rose as high as $99,950 but was pushed back by the MA 100. Current support is at MA 200, also acting as previous resistance now support. The RSI is concerning at 53.60, with prices falling. Trading volume is down 17.90% today, despite the Fear and Greed Index showing extreme greed at 79, the sentiment feels bearish.
The Market Sentiment
The market intelligence platform Santiment shared insights showing how Bitcoin often moves against market sentiments. On December 15, social media speculated Bitcoin reaching $110k, but it topped at $108k. A similar scenario occurred at $104k with the same speculations. Historical analysis shows Bitcoin movements often oppose market sentiment. When bearish sentiment dominates, Bitcoin surprises with increases, and vice versa.
Bitcoin Dominance and Exchange Reserves
Bitcoin's market dominance is 58.43%, indicating preference over other cryptos. Price typically follows while falling below this dominance level, a support zone. We observe falling prices, but rising dominance suggests flows from alts back to Bitcoin. Exchange reserve data shows declines since February 2024, with rising price, signaling moves to cold storage and bullish momentum. Recent rises in reserves occurred when whales sold crypto over $100k, but the current trend indicates bullish movement ahead.
Based on the current situation, it can be seen that the market often moves contrary to expectations. Even with a decrease in Bitcoin reserves on exchanges and an increase in dominance, the price continues to fall. This may come as a surprise to many market participants when the market changes direction. The current situation creates an opportunity for large traders to make money in the market.
