Bitcoin is nearing the $90,000 mark as anticipation mounts for a potential ‘Santa rally’, buoyed by positive market metrics indicating that BTC could surpass the $100,000 threshold.

Highlights:

• The current price of Bitcoin has risen by 6.5% from recent lows, igniting hopes for targets as high as $120,000.
• Predominant short liquidations may provide bullish momentum.
• A crucial threshold is maintaining above $84,000 for continued upward movement.

During early trading hours in Asia, Bitcoin (BTC) surged as high as $89,850, marking a substantial recovery from a recent low of $84,400. Analysts are optimistic, with some interpreting the current trends as signs of a looming ‘Santa Rally’. The strategy is underpinned by a number of metrics highlighting potential price advancements, paving the way for optimistic projections towards $120,000.

Analyst Commentary:

“Grant us an early Christmas gift and let it rise to $98-$100K.”
Translation: “Grant us an early Christmas gift and let it rise to $98-$100K.”

Fellow analyst Captain Faibik noted that Bitcoin appears ready to break free from a bullish pattern, after previously consolidating between $82,000 and $95,000 since late November.

Interest around the ‘Santa Rally’ period, which spans from December 24 to January 2, has led to cautious optimism, though some experts express skepticism about reaching critical price heights this year.

Bitcoin’s current derivatives market structure suggests advantageous positioning for bulls, reflecting bullish market dynamics without overheating.

Key Support Area

It is essential for Bitcoin to remain above the $84,000 level, identified as a critical psychological barrier since a retesting event on November 11. Failing to hold this support could jeopardize recovery efforts and set the price back towards lower levels.