Market Analysis
The collective crypto market is showing signs of bullishness ahead of President-elect Donald Trump’s inauguration on January 20, with Bitcoin’s (BTC) price increasing by 8.5% in 2025.
Bitcoin Price Breaks Past $100,000: Analysts Weigh In
With Bitcoin breaking past the $100,000 mark yet again, multiple analysts have presented new all-time high targets for the largest crypto asset in the coming days.
Could Bitcoin Hit $138K in February?
According to Posty, a crypto trader, BTC’s current price action reflects its bullish rally from Q1 2021. After considering the laws of diminishing returns over a period of four years, Posty believes that if BTC continues to follow its previous cycle pattern, it would be valued at around $138,000 in February.
BTC’s Monthly Chart: A ‘Nasty’ Setup or a Bullish Rally?
On the other hand, Cryptochimpanz, a Bitcoin proponent, thinks that BTC’s monthly chart illustrates a ‘nasty’ setup from its previous bull run. The trader believes that if we follow a similar path, the price of Bitcoin can go as high as $200k.
90% of Total Bitcoin Supply in Profit
Axel Adler Jr., a Bitcoin researcher, highlighted that 90% of the total Bitcoin supply is currently in profit. According to Adler, unless there is a ‘black swan’ in the current cycle, BTC drawdowns could be minimal and emulate its 2017 bull run rather than 2021, when China’s BTC mining ban momentarily halted the rally.
Coinbase Premium Returns to Neutral Index
After a period of rigorous selling between December 18 and January 2, Bitcoin’s Coinbase premium has returned to a neutral index as recorded on January 4. IT Tech, an anonymous Bitcoin analyst, explained that the premium increasing back to a breakeven point shows that ‘sentiment by the US and institutional investors is back.’
Why the Coinbase Premium Matters
However, it is essential to remember that the Coinbase premium largely tracks US retail investor sentiment rather than institutional sentiment.
Retail Investor Interest Drops Significantly
Contrary to the bullish sentiments, Cointelegraph earlier reported that overall Bitcoin retail investors’ transaction volumes have dropped significantly since BTC reached $108,000 last month. The rolling 30-day change in retail-sized transaction volumes under $10,000 has dropped to lows, which was last witnessed in September 2024.
Darkfost, an onchain analyst, said that it means retail interest had dropped significantly, but it opens an ideal buying opportunity over the long term.
Technical Perspective: Bullish Break of Structure (BOS)
From a technical perspective, Bitcoin has undergone a bullish break of structure (BOS) after it closed a daily candle above $97,000 last week. However, Crypto Scient, a markets trader, emphasized that $100,000 remained a key inflection point for Bitcoin.
The trader said, ‘$BTC, Unless we breach $99k and flip it to support, I think we will see lower prices in Jan. Pretty simple triggers for me here: Break and flip $99k or retest or $90-88k zone.’
Conclusion
As the market continues to show signs of bullishness, analysts are predicting new all-time high targets for Bitcoin. With 90% of the total Bitcoin supply in profit and a Coinbase premium returning to a neutral index, it is clear that sentiment among investors is shifting towards optimism.
However, it is essential to remember that the crypto market can be highly volatile, and predictions should not be taken as investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Disclaimer
This article is for general information purposes only and should not be considered as legal or investment advice. Readers should conduct their own research and consult with a financial advisor before making any investment decisions.
