Bitcoin Rebounds 2.5% Targeting $105,000 Amid Bullish Debate

Bitcoin's price has been a hot topic among market participants, with differing views on whether the current bull market will continue or is approaching its end. The cryptocurrency saw a significant rebound, rising 2.5% from its daily lows to retarget the $105,000 mark following the market open. This volatility has led to varied interpretations among traders and analysts regarding the future trajectory of BTC/USD.

Optimistic voices, such as Rekt Capital, suggest that Bitcoin needs to hold around $104,400 as support to position itself for a successful post-breakout retest. This perspective aligns with the idea that the current price levels are crucial for maintaining bullish momentum. Daan Crypto Trades, another prominent trader, identified $102,000 and $106,000 as key levels to watch, indicating that these zones have been pivotal in recent trading activity. The area around $106,000 is particularly significant, as it marks a supply cluster where 31,000 BTC were acquired at that cost basis, according to onchain analytics firm Glassnode. This supply cluster, originating from December 16, remains unshaken, making $106,600 a critical level to monitor in the short term.

However, not all market participants share this optimism. Roman, a fellow trader, expressed concerns about the bull market's sustainability, citing bearish signs such as resistance rejection, bearish divergences, and low volume pumps. The stochastic relative strength index (RSI) indicator, which is now in "overbought" territory, further supports Roman's bearish outlook. This divergence in opinions highlights the uncertainty surrounding Bitcoin's future price movements.

Bitcoin's price has been consolidating within the $100,000 to $105,000 range, with investors awaiting a breakout. Data indicates that short-term holders' (STH) unrealized profits have reached 21%, swinging from -19% to +21% within a month. This shift suggests that recent price movements have benefited short-term traders, who have seen their profit margins improve significantly.

Despite the volatility, Bitcoin has shown resilience, holding steady below the $105,000 mark as bulls regain control. The cryptocurrency's ability to maintain support levels and rebound from dips has been a testament to its strength. However, the market remains cautious, with moderate volume suggesting a measured approach to buying.

In summary, Bitcoin's price action continues to be a subject of intense debate, with traders and analysts divided on whether the bull market will continue or is nearing its end. The cryptocurrency's ability to hold key support levels and rebound from dips will be crucial in determining its future trajectory. As the market awaits a breakout, the coming days will be pivotal in shaping Bitcoin's price movements.