What is Bitcoin Next Stop After Crossing $107k?

Bitcoin resumed its uptrend after a massive decline last week. It lost almost 4% on the first day, dipping to a low of $94k.

The huge increase in selling pressure overwhelmed the bulls as they failed to soak up the excess supply. News of MicroStrategy going shopping caused notable panic among traders as they decided to sell. Onchain data pointed to most of the sales coming from Binance, suggesting retailers were behind the dump.

The dump resulted in further fear, uncertainty, and doubt as the asset sank to the previous low the next day. Nonetheless, BTC recovered on Wednesday with an almost 5% surge, peaking at $101,900 from $96,600.

One buildup to the most recent milestone was that the bulls maintained prices above $100k for over three days before the breakout. The apex coin attained a new ATH on Sunday, surging from $101,400 to $105,149. Closing with gains exceeding 3%, the uptrend continued during the current intraday session.

It rebounded after a small decline and surged as the buyers rallied the market. It registered a fresh all-time high at $107,821. Although trading below it, there are several speculation as to the reason for the new milestone.

Nonetheless, one probable cause is renewed optimism among investors. Several bullish fundamentals took the center stage towards the end of the previous week. One such was the proposal by a Japanese lawmaker to explore the possibility of a strategic Bitcoin Reserve.

The United States’ president-elect also expressed optimism in a the nation, implementing a strategy BTC reserve once he assumes office. Other sources claimed that the United Arab Emirate may already have a reserve.

All bullish claims revived the bullish sentiment amidst the FUD. Onchain data sheds more light on how the market responded.

Massive Whale Inflow

Investors in the United States were some of the top gainers from the massive bullish fundamentals. Data from CryptoQuant shows that traders from this region maintained the buying pressure and are the main drivers of the current uptrend. They exerted more effort at buying during the current session than the previous day. The Coinbase premium is green, hinting at whales participation as well.

The exchange reserves are declining due to the ongoing buying trend. It is at it lowest in the last seven days as the bulls sustain the volume amidst small failure. Traders are withdrawing more assets from these trading platforms and moving  to cold storage as they anticipate further price increases.

The funds premium is positive as investors pump notable revenue into exchange-traded funds. Data from SosoValue shows that these instrument saw a netflow of $428 million in Friday. The chart also shows that the asset has been on this bullish pattern since Nov. 27.

Nonetheless, the unrealized profit grows as Bitcoin attains fresh ATH. The latest development increases fears of and impending correction.

Bitcoin Eyes $110k

A previous analysis pointed to US traders being the trigger for the next break out and hinted at a surge to $110k. This plays out as Bitcoin edged closer to $108k, barely $3k shy of the highlighted mark.

Previous price movements suggest that this may be the case as the asset added an average of $2,500 from its previous high.

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