Bitcoin hit a new all-time high on Monday, hitting a high of $106,648. About $120 million in derivatives positions were liquidated, according to Coinglass data. Analysts say Bitcoin is in the blue-ceiling region and BTC's next target could be $110,000.
Bitcoin hit an all-time high above $106,000 on Monday, following recent developments regarding President-elect Donald Trump's strategic Bitcoin reserves and demand from institutional investors.
The Bitcoin Fear and Greed Index, a measure of sentiment among traders, read 83 on a scale of 0 to 100, indicating “extreme greed” among traders. This is consistent with sentiment from last week and last month.
Analysts remain bullish on BTC, setting a maximum crypto target of $110,000 while Bitcoin is in “blue sky” territory, meaning the token is above all-time highs .
Bitcoin’s Rise to $106,648 Causes Close to $120 Million in Liquidations
Bitcoin rose to an all-time high of $106,648 in the early hours of Monday. This rally is primarily driven by institutional demand, as evidenced by consistent inflows into Bitcoin ETFs throughout this week. President-elect Donald Trump commented on his strategic Bitcoin reserve last week, saying the United States would do great things with the cryptocurrency.
At the time of writing, Bitcoin's market capitalization is over $2,071 billion, with the largest crypto token trading slightly lower at $104,773.
Most altcoins ranked among the top 100 cryptocurrencies by market capitalization recovered from the weekend correction and observed slight gains on the day.
More than $118 million in derivatives positions were liquidated in response to Bitcoin's new all-time high, according to data from Coinglass.
Cryptocurrency analyst Tony Sycamore told Reuters:
This is blue sky territory. The next number the market is looking for is $110,000. The backlash that many were waiting for didn't happen because now we have this news.
Where is Bitcoin headed?
Bitcoin is trading nearly 2% below its all-time high. The largest cryptocurrency is trending upward as seen in the daily price chart of BTC/USDT. If the asset falls further, the fair value gap (FVG) between $102,650 and $104,259 could act as a support zone for Bitcoin.
The momentum indicator has a Relative Strength Index (RSI) of 68. The RSI is below 70, above which typically generates a sell signal for Bitcoin. Moving Average Convergence Divergence (MACD) flashes a red histogram bar below the neutral line. This means that the underlying momentum of Bitcoin price is negative.
However, the situation can change, so traders should always be on the lookout. If the MACD line breaks above the signal line, it could indicate a reversal in momentum, possibly on the daily time frame.
BTC has entered price discovery above the $106,648 peak and could target $131,252, the 161.80% Fibonacci retracement of the rally from the November 4 low of $68,835 to Monday's new high.
BTC/USDT daily price chart
The 78.6% Fibonacci retracement level at $98,128 could act as support on a pullback.
