Bitcoin’s price could be heading for the psychological $100,000 level after breaking above $95,000 on Tuesday, with analysts attributing the recent rally to a surge in spot buying.
“Seems like this rally on Bitcoin is led by spot buying,” crypto analyst Will Clemente said in an X post on Tuesday. Over the past 24 hours, Bitcoin (BTC) has rallied 4.65%, trading at $95,190 at the time of publication, according to CoinMarketCap.
Traders shorting the asset were caught offside, with $269.21 million in Bitcoin short positions liquidated, according to CoinGlass data.
It is a bullish sign for Bitcoin (BTC) holders as spot buying means investors are buying the underlying asset itself, rather than paper contracts like Bitcoin futures or options, which can inflate prices without real demand.
“Quite clear” Bitcoin is going to run to $100,000
MN Trading Capital Michaël van de Poppe said in an X post on Tuesday that it is “quite clear that this is going to run to $100K in the coming week and that dips are for buying.”
Bitcoin has failed to reclaim the $100,000 level after falling below it on Nov. 13 last year.
According to crypto prediction markets platform Polymarket, Bitcoin has 51% odds of reclaiming $100,000 by Feb. 1 and a 23% chance of reaching $105,000.
Historically, January has been a modest month for Bitcoin, averaging a 4.18% gain since 2013, while February has typically been much stronger, delivering an average return of 13.12%.
Van de Poppe added, “the bull market hasn’t died, it’s about to start.”
Crypto sentiment at extreme lows for over two months
If Bitcoin returns to the six-figure price level, it could spark new excitement across the market, according to crypto sentiment platform Santiment.
“There will likely be retail FOMO creeping in if crypto’s top asset begins teasing $100K in the next few days, ” Santiment said in an X post on Tuesday.
Crypto sentiment has been largely negative since early November, following the significant $19 billion market liquidation on Oct. 10.
The Crypto Fear & Greed Index has bounced between “fear” and “extreme fear” over this period. On Wednesday, the index posted a “fear“ score of 26.