As markets approach the end of annual trading, Bitcoin price is gaining momentum and making an entry above $95,000. With a notable increase in buying pressure, the star token is expected to see a surge ahead of the year-end close. Moreover, there has been significant growth in institutional demand and, as a result, the foreign exchange reserve has faced massive deflation.
BTC exchange reserves have been depleted since the beginning of the year and flows have reached levels not seen since 2016. This could be a major bullish signal, but since there are almost a million BTC held at the institutions, they could play a major role in driving the next price action. Meanwhile, the price is trying to rise above the ongoing consolidation and a bullish close above a certain range could revive a strong bull run towards the highs of the ongoing bull run.
The historical price pattern, which remains consolidated within an ascending parallel channel, suggests that the price is in between a bull run. The RSI pattern suggests that there is still more room for the token to rise as levels have yet to rise above 90. During every bull run in 2014, 2018 or 2021, the monthly RSI marked the highs close to 94. While the current levels have been limited to 76 or 77, indicating that the peak of the ongoing bull run has yet to be reached.
Meanwhile, levels remain within the overbought zone, maintaining a bullish outlook for the token. The BTC price has recovered $95,000 ahead of the annual close with an increase of over 3%, while weekly trading remains within the bearish range. However, there has been a massive increase in stablecoin reserves, reaching $45 billion. Therefore, the upcoming price action in January 2025 is expected to be explosive, with an expectation of $120,000.