Bitcoin surged to $90K once again during the Asian trading session on December 29th, marking a 2% increase following a quiet holiday period. This rise came after BTC missed out on the Santa rally that had propelled U.S. equities to record highs.
However, data from CoinGlass revealed that the recent uptick was driven by a search for liquidity to cover leveraged short positions above $90K.
In the past few days, Bitcoin [BTC] has been trading within a range of $85,000 to $90,000, with price movements influenced by liquidity grabs.
Source: CoinGlass
With some upward liquidity at $90.9K, there is a possibility of another push upwards in the near future.
New Year Rally Expectations and Altcoin Surge
The recent movements may not just be liquidity grabs. According to CryptoQuant, speculators in the Futures market have been increasing their bullish positions, potentially anticipating a New Year rally.
The Bitcoin Funding Rate, a gauge of market sentiment, has seen a recent surge, indicating a more bullish stance for a potential breakout.
Source: CryptoQuant
This sentiment was shared by Sebastian Bea, CIO of BTC treasury firm ReserveOne Inc., who observed,
“Monday’s uptick appears somewhat driven by short-term retail traders taking on growing positions in Futures.”
The altcoin market also saw some positive movement following Bitcoin’s rise. Canton [CC], Midnight [NIGHT], and Solana [SOL] were among the top gainers, with CC leading at 10%, followed by NIGHT at 9.4%, and SOL at 3%.
There was a notable trend of altcoin accumulation, particularly with Chainlink [LINK] and Artificial Superintelligence Alliance [FET], as shown by Binance Altcoin Netflow data.
Source: CryptoQuant
Despite this, altcoins still trailed behind BTC, with the overall altcoin season index at 18. However, the altcoin market cap broke a crucial resistance level, suggesting a potential resurgence, as highlighted by analyst Ash Crypto.
Source: X
Looking ahead, the release of the FOMC minutes from the previous meeting on December 30th is expected to impact January rate cut expectations and could lead to market volatility on New Year’s Eve.
Final Thoughts
- Bitcoin saw a 2% increase during the Asian session fueled by growing bullish sentiment for a potential New Year rally and liquidity hunt.
- Certain altcoins experienced daily price gains of 3-10% alongside an uptick in accumulation trends.
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