Bitcoin Price Surges Toward $90,000 as Analysts Predict 'Santa Rally'

Bitcoin (BTC) charged toward $90,000 during the early Asia trading hours on Monday as a key market metric suggested a “tactical” upside potential for BTC price. The cryptocurrency is up 6.5% from recent lows, fueling “Santa Rally” hopes with targets up to $120,000. Short liquidations are dominating, which can provide fuel for the bulls. However, Bitcoin price must not fall below $84,000 for a sustained recovery.

Bitcoin's Aggressive Price Movement

Bitcoin's price has been on a rollercoaster ride, with the cryptocurrency surging toward $90,000. The price movement has been fueled by hopes of a “Santa Rally,” with targets up to $120,000. Analyst AlphaBTC said that the ongoing recovery could see the BTC/USD pair rise higher, first toward the yearly open at $93,300 and later toward the $98,000 and $100,000 resistance zone.

Technical Analysis

Fellow analyst Captain Faibik said that Bitcoin was looking to break out of a bullish megaphone pattern after consolidating within a wide range stretching from $82,000 to $95,000 since Nov. 22. The measured target of the megaphone pattern is $120,000, representing a 34% rally from the current price.

Derivatives Structure

Bitcoin's current market setup offers tactical upside potential, reinforced by a favorable derivatives structure in the futures market. According to CryptoQuant analyst Axel Adler Jr, the regime score is bullish but not overheated. The long/short liquidation dominance oscillator has dropped to -11%, signaling a surge in forced short position closures, while its 30-day moving average remains positive at 10%.

Key Support Level

Bitcoin's key support remains $84,000. The price has held successfully above this level since retesting it on Nov. 11. This has remained a critical level on traders' radars and one that has to be defended to avoid further downside. Trader and analyst Daan Crypto Trades said that $84,000 “remains a key area to defend for the bulls on the high timeframe.”

Conclusion

In conclusion, Bitcoin's price movement has been fueled by hopes of a “Santa Rally,” with targets up to $120,000. The cryptocurrency's derivatives structure and technical analysis suggest a tactical upside potential. However, the key support level of $84,000 must be defended to avoid further downside. As the market continues to evolve, it is essential to keep a close eye on Bitcoin's price movement and adjust investment strategies accordingly.