Bitcoin Shows Early Recovery with $101.7K Trigger Showing Positive Potential

3 hours ago 12

February 2, 2025 by Bena Ilyas

Bitcoin ended January at $102,412, its first monthly close above $100K, fueling speculation about future moves.
Analyst BigCheds identifies $101.7K as a potential trigger for long positions, but sustained momentum is key.
Bitcoin’s market cap surged to $1.98 trillion, with $500 million in liquidations and heightened market volatility.

Bitcoin (BTC), the world’s largest digital asset, officially ended January at $102,412, marking its first monthly close above $100,000. This milestone has fueled speculation about BTC’s next move, with analysts drawing parallels to previous bull market cycles. Institutional accumulation continues to shrink supply, increasing the chances of a major rebound.

Bitcoin is showing early signs of recovery, with traders closely monitoring resistance levels for confirmation. Analyst BigCheds highlights a 1-hour Morningstar pattern, suggesting $101.7K as a potential trigger for long positions. A one-hour Morningstar pattern hints at strength, but sustained momentum is crucial. If BTC fails to hold gains, renewed selling pressure could emerge in the volatile crypto market.

Technical traders emphasize that a definitive breakout above key resistance levels is essential for bullish confirmation. If BTC struggles to sustain upward movement, it could trigger further declines. Despite investors’ caution, Bitcoin has managed to stay above $100K for five consecutive sessions, demonstrating resilience in the current market environment.

Bitcoin Price Fluctuations and Market Liquidations

On February 1, Bitcoin declined by 1.54% after Friday’s 1.86% drop, closing at $101,041. However, BTC avoided slipping below $100K, maintaining its crucial psychological support level. The digital asset trades at $100,419, reflecting a 1.87% decrease in the last 24 hours. Its market cap surged to $1.98 trillion, indicating continued investor interest.

Despite bullish momentum, BTC remains below key moving averages, signaling persistent bearish pressure. A failed breakout above $105K led to strong selling, pushing BTC to intraday lows. Increased trading volume highlights heightened market activity, with $102,200 as a crucial level for recovery. A failure to reclaim this mark could drive BTC below $99,800.

Bitcoin dropped to $99,000, its lowest level since Monday’s correction, before rebounding. The cryptocurrency now trades slightly higher, striving to regain six-digit territory. Meanwhile, altcoins have suffered heavier losses, with SOL, DOGE, LINK, AVAX, LTC, and HYPE posting nearly double-digit declines.

In the past day, enhanced market volatility has resulted in over $500 million in liquidations, with over $400 million occurring in the last 12 hours. Nearly 250,000 traders faced liquidations, with Binance witnessing the largest single liquidation order worth nearly $12 million. As BTC navigates key levels, traders remain highly alert for potential market shifts.