In a significant market development, Bitcoin (BTC) has surpassed the $100,000 mark for the first time in 2025, buoyed by sustained institutional buying. This breakthrough opens the possibility of revisiting the cryptocurrency’s all-time high. Notably, MicroStrategy announced on January 6 that it acquired an additional 1,070 Bitcoin for $101 million at an average price of $94,004 between December 30 and 31, 2024, bringing its total holdings to 447,470 Bitcoin. Additionally, Metalplanet CEO Simon Gerovich announced plans to substantially increase the firm’s Bitcoin holdings from 1,762 to 10,000 in 2025.
Cryptocurrency investment products have also seen significant inflows, with CoinShares reporting $585 million in inflows in the initial days of 2025, continuing the momentum from a massive $44 billion in inflows in 2024.
The recent market rally raises questions about Bitcoin’s ability to lift altcoins higher, as analysts remain optimistic in the long term but unsure about any immediate sharp moves. Markus Thielen of 10x Research projects that Bitcoin might stabilize between $97,000 and $98,000 by the end of January.
In the broader market, the S&P 500 Index rebounded from the neckline of a head-and-shoulders pattern on January 3, with bullish traders propelling the index above its moving averages on January 6. The index faces potential resistance at the 6,050 to 6,100 zone, and a breakthrough could see it climb toward 6,347. Conversely, bears would need to push the price below the moving averages to regain control.
The US Dollar Index also saw a rise to 109.53 on January 2 but struggled to maintain this level. Bears pulled the price down to the 20-day EMA at 107.77, a level to watch closely. A sustained rebound might push the index toward 111, while a break below could see a dip to the 50-day SMA at 106.42.
In the cryptocurrency space, Bitcoin’s breakthrough above $100,000 suggests the bulls are back in control. If sustained, the BTC/USDT pair could aim for the all-time high of $108,353, although this level might trigger significant selling. A failure to hold above $100,000 could indicate a bull trap, potentially pushing the pair back to $90,000.
Ether (ETH) also showed strength by breaking above $3,555 on January 3, completing a bullish ascending triangle pattern. Positive indicators include an upward 20-day EMA and a favorable RSI. The breakout target is $3,894, with sellers expected to defend the breakout threshold and short-term buyers potentially getting trapped below $3,555.
XRP faces selling at the resistance line, though bulls maintain control above the 20-day EMA at $2.29, potentially leading to a rally toward $1.73 and then $2.91. Bears need to push prices below the support line to regain momentum.
BNB remains confined between the 20-day EMA at $703 and resistance at $722. A breakthrough could propel the BNB/USDT pair toward $794, while a fall below the EMA might lead to a decline to $635.
Solana (SOL) has broken above the 50-day SMA at $219, signaling an attempt at recovery. A sustained price above this level could target $235 and $247, while a reversal below the 20-day EMA would affirm the bears’ influence.
Dogecoin (DOGE) rose above the 50-day SMA, indicating diminishing selling pressure. Should the price surpass $0.40, it might climb to $0.43 and then $0.48. A break below the 50-day SMA could lead to consolidation between $0.30 and $0.43.
Cardano (ADA) shows resilience near $1.12 resistance, with moving averages trending up and the RSI suggestive of upside momentum. Bulls aim to push the price to $1.20 and potentially $1.32, while a dip below $1.05 would weaken their position.
Lastly, Avalanche (AVAX) climbed above the 50-day SMA at $43.23, but faces resistance between $44.70 and $47.31. A break below the 20-day EMA at $40.97 would signal continued bearish pressure.
