Outside Source
An overdue reset in the Bitcoin funding rate and the return of a strong spot bid are reasons behind BTC’s rally above $100,000.
Market Update
After a rocky start to the week, Bitcoin made a strong push above $100,000, and a handful of analysts expect BTC to make a run at the $110,000 level.
The move back to $100,000 comes as the November Consumer Price Index report showed a slight uptick in inflation in the US. Historically, crypto traders have had a tendency to risk-off days ahead of CPI prints and the US Federal Reserve FOMC meetings before re-entering the market, dependent upon the results of the data.
On the more crypto-focused side, the re-emergence of the Coinbase premium was an early sign that the spot bid for Bitcoin was back and that the price might make a run toward the range highs in the short term.
BTC/USD 4-hour chart. Source: TRDR.io / Cointelegraph
Related: Is Bitcoin topping out? Gold fractal hints at 35% BTC price correction ahead
In addition to a strong spot bid on Dec. 11, liquidations within the futures market also played a role in the push above $100,000.
BTC/USDT 1-hour chart. Source: Velo.xyz / Cointelegraph
Currently, BTC price has run into a block of asks in the $101,500 range, and futures liquidation data from CoinGlass suggests that traders will need to press the price in this zone if the goal is to trigger another wave of liquidations that run BTC closer to its all-time high.
Bitcoin liquidation map (all exchanges). Source: CoinGlass
This article first appeared at Cointelegraph.com News
