Will Bitcoin Reach New Heights Today? Key Factors to Watch in BTC’s Rally

• Bitcoin is expected to stage a historic run to an unprecedented level once it makes a decisive surge above the $106k resistance level. 
• Another analyst also estimates Bitcoin to decline to $92k, predicting the excitement around the US presidential inauguration to fade. 

Bitcoin’s (BTC) dominance increases to 57.42% after significantly surging to reach a daily high of $107k. According to our market data, the asset appears to have taken a marginal nosedive, declining to $105k at press time. Meanwhile, its 24-hour performance remains positive as investors make a 0.3% gain, extending the weekly surge to 8%.

Next Direction of the Bitcoin Price

According to analyst Rekt Capital, Bitcoin is consolidating within the $101K-$106K range in anticipation of a breakout. As the chart below indicates, the asset’s confluence support zone appears to have provided stable support for a possible rebound.

Source: Rekt Capital on X

However, the upper boundary of $106k displays a very strong psychological barrier, restricting any explosive movement. Even so, experts believe that BTC could hit $122k by February, as outlined in our recent blog post.

Commenting on this, Rekt Capital explained that Bitcoin could stage a historic rally once it successfully turns the $106k mark into support by the close of the day. Meanwhile, an analyst identified as Ted Boydston has pointed out that “no one can accurately predict the Bitcoin price despite the several claims.”

According to Boydston, experts can only analyze the market trends and compare models to understand a possible move. However, these methodologies only show possibilities rather than certainties.

On-Chain Activities

Amidst the backdrop of the discussions surrounding its technical analysis, on-chain data suggests that whales have actively increased their activities as they acquire more than 22,000 BTC ($2.24 billion). Renowned analyst Ali Martinez has also observed an interesting surge in key market metrics, highlighting a notable increase in engagements across the network.

Source: Ali Martinez

In a previous article, we discussed the growing demand for Bitcoin marked by the aggressive accumulations by large investors. A couple of months later, Bitcoin recorded a new all-time-high price at $108k. This implies that a repetition of this scenario could send the asset up the price curve.

Contrary to this bullish continuation thesis, analyst Justin Bennet believes that Bitcoin may lose its momentum once the Trump inauguration euphoria fades. To prove his seriousness, the analyst stated to be holding a short position for Bitcoin. Per his observation, Bitcoin is “range-bound until proven otherwise.” If his observation turns out to be true, the asset could decline to retest the January 13 low of $92,000.

Meanwhile, on-chain analyst Willy Woo expects a significant shift in the market as he anticipates the Bitcoin bull run to be triggered by sovereign wealth funds that may follow the footsteps of El Salvador and Bhutan. According to him, the previous cycle was started by MicroStrategy, and this year may not be different.

I think this cycle starts to come out and the cycles ahead. And so everything becomes a race, and I don’t know if these are big unlocks, I think it’s one step after the next and the next and the next.

As previously mentioned in our report, MicroStrategy has already made a significant move to approve a $10.3B share expansion to boost Bitcoin reserves.