Bitcoin Price Analysis: Bulls Eye $107K Amid Epic Comeback

Today, Bitcoin has marked a V-shaped reversal, surging to $103K. The question now is whether this recovery can sustain momentum to hit the $107K target.

As concerns surrounding DeepSeek AI subside, the crypto market is making a bullish move. The total crypto market capitalization has reclaimed the $3.5 trillion level, with Bitcoin bouncing back above the $103,000 mark.

With Bitcoins recovery rally helping the market regain a $2 trillion valuation, can BTC extend this rally to reach the $107,000 level？

Bitcoin Price Analysis

On the 4-hour chart, Bitcoins price trend displays a rapid V-shaped reversal after breaching the 200 EMA line. The 50% Fibonacci level at $98,611 has provided strong support, contributing to the formation of a morning star pattern.

Following a lower price rejection that created a low at $97,750, Bitcoin is now back in action. It is currently trading at $103,227 and has broken above the 200, 100, 50, and 20 EMA lines. The next immediate target is the 78.6% Fibonacci level at $103,393.

However, higher price rejection points to ongoing resistance. The bullish reversal has driven the 4-hour RSI back to the midpoint, signaling an increase in demand.

Institutional Bitcoin Support Weakens Amid ETF Outflows

Despite the strong recovery, the recent downturn in U.S. tech stocks has led to a decline in institutional support for Bitcoin. On January 27, U.S. spot Bitcoin ETFs recorded an outflow of $457.48 million.

BlackRock remained the sole purchaser, with an inflow of $63.94 million. Meanwhile, Fidelity led the selling spree with an outflow of $268.59 million, followed by Grayscales GBTC with an outflow of $108.47 million.

Bitwise saw an outflow of $88.57 million, and ARK and 21Shares sold Bitcoin worth $50.11 million. VanEck was the smallest seller, with $5.68 million in outflows. The remaining six Bitcoin ETFs had no net outflow.

Bullish Speculations in Bitcoin Derivatives

In the past 24 hours, the crypto market saw liquidations amounting to $588.66 million. Amid the ongoing volatility, bullish sentiment is resurfacing in Bitcoin derivatives.

Open interest has reclaimed a $66 billion valuation, while the long-to-short ratio has risen to 0.9681. Similarly, funding rates have experienced a V-shaped recovery, now at 0.0085%.

These developments highlight a strong bullish momentum, suggesting the potential for an extended uptrend.

BTC Price Targets

As bullish speculation fuels Bitcoins V-shaped recovery, a breakout above the 78.6% Fibonacci level at $103,393 would signal a potential buying opportunity. The following price target, based on Fibonacci levels, is $107,123.

On the downside, crucial support levels are at the $100,000 mark and the 50% Fibonacci level at $98,611.