Bitcoin has signaled notable bullish strength by breaking above both the 100 and 200-day moving averages at $90K. However, as the price approaches the critical $100K psychological threshold, a temporary consolidation phase is expected before any further breakout.

Technical Analysis

By Shayan

The Daily Chart

Bitcoin has recently notched a strong bullish signal, staging a major market shift driven by substantial buying pressure. This rally has propelled the price above a critical resistance zone, reclaiming both the 100 and 200-day moving averages at $90K — a key indication of buyers’ dominance.

Currently, BTC is approaching the psychological $100K threshold, a major resistance likely filled with significant supply. As a result, a temporary consolidation around this level is expected before any potential breakout occurs. A decisive move above $100K would likely pave the way toward retesting the all-time high (ATH).

The 4-Hour Chart

On the lower timeframe, Bitcoin confirmed its bullish momentum after breaking above the descending channel’s upper boundary at $84K. This breakout triggered an impulsive surge, pushing the price past the critical $90K resistance level, highlighting strong buyer commitment.

Now, the asset is nearing the crucial $100K psychological resistance, which also aligns with a major previous swing high. If buyers succeed in breaching this barrier, the road to Bitcoin’s ATH could reopen. Conversely, failure to break above may lead to a short-term consolidation below $100K before the next significant move.

On-chain Analysis

By Shayan

After Bitcoin completed its corrections and initiated recoveries in October 2023 and September 2024, Binance Futures funding rates notably turned deeply negative during the early stages of each rally. This recurring pattern highlights a persistent lack of investor confidence during sharp declines or prolonged consolidations.

In contrast, during strong Bitcoin rallies, FOMO-driven traders aggressively deployed leverage to open long positions, causing funding rates to spike sharply. This often signaled overheated conditions and triggered subsequent corrective pullbacks.

Currently, Bitcoin has surged more than 28% off its recent low. Following this rally, the funding rates have, with a delay, experienced a significant upward shift, signaling a renewed influx of leveraged long positioning.

Considering the historical behavior during the previous two major recoveries, current sentiment dynamics, and price structure strongly suggest that Bitcoin is well-positioned to break through its previous all-time highs in the near term.