Bitcoin’s price appears to be approaching the crucial psychological level of $100,000 after surpassing $95,000 on Tuesday, primarily driven by a notable increase in spot buying. According to crypto analyst Will Clemente, “Seems like this rally on Bitcoin is led by spot buying.” As of the latest note, Bitcoin (BTC) has surged by 4.65%, trading at $95,190, as reported by CoinMarketCap.

Liquidations among short positions have been significant, amounting to $269.21 million, indicating traders who bet against Bitcoin were left wrong-footed during this rally.

This trend is positive for Bitcoin investors because spot buying reflects actual purchases of the cryptocurrency rather than derivatives that could artificially inflate prices without genuine demand.

Analysts Forecast a Move to $100K

MN Trading Capital’s Michaël van de Poppe asserted, “it is quite clear that this is going to run to $100K in the coming week and that dips are for buying.” Despite previous failures to maintain the $100,000 benchmark since falling below it in November of last year, sentiment appears bullish with historical data suggesting a 51% chance Bitcoin restores that level by February 1, with a 23% likelihood of hitting $105,000.

January has generally yielded modest gains for Bitcoin, while February historically shows stronger performance.

If Bitcoin breaches the $100,000 mark, it could reignite market interest, as highlighted by Santiment’s remarks about potential retail FOMO (Fear of Missing Out) if this top cryptocurrency flirts with six figures in the upcoming days. The market sentiment has remained largely pessimistic recently due to a $19 billion liquidation that took place on October 10, leading the Crypto Fear & Greed Index to fluctuate between states of fear and extreme fear. Currently, the index stands at a fear level of 26.