After experiencing a brief pullback ahead of Christmas, Bitcoin has finally surged back, surpassing the $98,000 mark, providing a much-needed "green Christmas gift" for Bitcoin bulls worldwide.

On December 24, as Wall Street opened, Bitcoin’s price skyrocketed, driven by strong spot market demand, breaking through the psychological barrier of $98,000. It reached a high of $99,487, setting a new recent trading recordAccording to data from TradingView, Bitcoin hit a new peak of $98,020, rekindling conversations about the so-called "Christmas rally" as its price surged by more than $5,000 in a matter of hoursAs the market heated up, investors were drawn to the prospects for future price movements.

The primary force behind this rebound has been the robust buying pressure in the spot marketExitpump, a well-known account in the crypto space, expressed optimism about the trend, suggesting Bitcoin could be on track for a "Christmas rebound." They pointed out the influx of BTC spot buyers and shared a chart showcasing order data from exchanges to highlight the mounting buying pressure

The optimism was further validated by the spike in the number of long positions across various platforms.

Recent data from CoinGlass confirms this shift in market sentimentIn the last 24 hours, nearly $40 million worth of BTC shorts were liquidated, contributing to a total of over $150 million in liquidations across the cryptocurrency marketThis large-scale short squeeze signals that bearish sentiment is gradually fading, with more investors turning bullish.

Technical Analysis: The Next Key Resistance Level at $98,500

From a technical standpoint, Bitcoin's price faces an important resistance level after breaking above $98,000. The first VWAP resistance level has already been surpassed, and many analysts are eyeing the $98,500 threshold as the next key barrierIf Bitcoin can break through this level, it may be poised to reach new all-time highs, continuing its upward trajectory.

At the same time, Coinbase premiums have been rebounding, which reflects growing buying pressure during U.S

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trading hoursAs the premium rises, so does the overall market sentiment, further fueling the upward momentumThis is particularly noteworthy as Coinbase is one of the largest exchanges in the U.S., and its price premiums often serve as a barometer for market sentiment.

Analyst Outlook: Cautiously Optimistic, Yet Risk Remains

Despite the overall positive market sentiment, some analysts have raised cautionary notesRenowned trader Rekt Capital, in a recent post on X (formerly Twitter), pointed out that while Bitcoin has shown signs of recovery, attention must be paid to support levelsHe explained, "Yesterday, Bitcoin's price nearly dropped to a new low after the reboundToday, it has rebounded again and is testing previous support levelsOverall, as long as lost support levels turn into new resistance, there remains the risk of further downside."

Rekt Capital further emphasized that if Bitcoin can reclaim its previous support levels, it would signal a strong bullish momentum, opening the door for further price gains

His cautionary outlook highlights the inherent volatility in Bitcoin’s price action and the importance of monitoring key levels for potential shifts in market dynamics.

Market Outlook: A Potential Breakout Ahead

Despite the looming risks of further downward movements, Bitcoin's price momentum is akin to a small, resilient seed pushing through difficult soilIt seems to be gathering steam, almost silently, preparing for a potential breakthroughIn the face of a volatile and uncertain market environment—much like a lone ship navigating through a storm—Bitcoin’s rebound has the potential to be a game-changerIf Bitcoin can break through the $98,500 resistance and sustain that level, it could inject a significant amount of confidence into the market, driving optimism among traders and investors.

Moreover, analyzing the market's internal mechanics, we can see a confluence of factors that could help fuel a major rally

The ongoing liquidation of short positions, like a house of cards collapsing, combined with continuous buying pressure from the spot market, is steadily pushing Bitcoin's price upwardThese factors are setting the stage for what could be a truly breakout rally in early 2024.

The speed and scale of short liquidations, coupled with an increasing number of buy orders, are like the rising tide of an impending flood, with the potential to change the direction of the marketThis combination of forces could lead to a decisive breakout, with Bitcoin breaking through previous resistance levels and potentially reaching new all-time highs.

The Road Ahead: Will Bitcoin Break Through the $98,500 Barrier?

As the days progress, the crypto market will closely monitor whether Bitcoin can continue its ascent past the crucial $98,500 markA successful breakthrough of this level could pave the way for a historic price surge, with Bitcoin's all-time high becoming increasingly within reach