Bitcoin Targets $108K: Will Bulls Overcome Bearish Pressure?

Bitcoin price prediction 2025

This cryptocurrency traded over $105,000 in the earlier part of this week but has scaled down in the following days. Currently, on February 1, 2025, to be precise, the cryptocurrency is at $102,250 which is -1.98% down from the previous close. The trading high has been recorded at $105,939 while the low has been recorded at $101,551 after today’s market trading period. This recent performance has forced analysts to review the major market fundamentals to analyze whether Bitcoin is capable of surmounting a vital resistance level of $ 108,000, which is also equal to its all-time high.

Funding Rates Indicate Potential Weakness

One key parameter that has a significant focus on-chain is the funding rate of the perpetual futures market. Arjun’s Crypto quant pointed out that these rates are declining, which signaled a fall in demand in the derivatives market.

Usually, positive funding rates mean that traders are willing to pay to stay in long positions and this corresponds to buying pressure. On the other hand, the recent decreases in funding rates mean indecision on the side of the traders toward further increases in price. This indicates a bearish divergence that can make the market call into question the strength of Bitcoin to carry forward its recent wave past the $108,000 zone.

The funding rate is crucial as it goes a long way in letting you know what the market participants are expected to think of the price of an asset. For degrees of funding, it means that speculators are exited from carrying procyclical long dollar positions which means that the price trend may slow down or even reverse. If Bitcoin cannot reclaim higher funding rates and travel beyond $108,000, this level of resistance will be hard to breach.

Long-Term Holders Exhibit Confidence

Holding bitcoins for at least seven years or more, the purchasing price or its ineffectiveness may be concealed, but promoting resilience. Consequently, research suggests that these investors have not delisted their stake from these equities, which is typical for people with a sell signal.

Long-term investors have also played the role of ‘buy and hold’ in the past, meaning that during the periods of the bearish market, they continue to support the price of Bitcoin. In prior cycles, many of these investors have sold sought-after portions of stocks all through their earlier times before reaching the apex in the bull market cycles. But no matter the case, the current result makes it clear that they continue to believe in Bitcoin as a future asset.

This unwavering commitment gives a strong indication that the positive outlook in Bitcoin will be realized to offer a firm base for the cryptocurrency. Their price Resistance to sell indicates that even though there may be bearish techniques residing in the short term, Bitcoins might have robust support at the current price levels.

External Factors Influencing Market Sentiment

It is also important to note that the overall economy and political environment has an influence in controlling Bitcoin markets. The recent policy measures including the 25% tariffs on Canadian and Mexican goods by President Donald Trump, have made investors look at other investment avenues such as gold, which has hit high. Surprisingly enough, Bitcoin has only slightly fluctuated during these processes, which may indicate the position of this cryptocurrency as an established store of value that pays off in terms of volatility.

Also, the sentiments of the current U.S. administration towards cryptocurrencies have a positive impact on the market. Realistic government actions like establishing a national BTC reserve and putting pro-Bitcoin people in powerful positions within the financial industry also mean that the regime will likely continue to support the adoption and the full integration of cryptocurrencies. As much as these advancements can be said to be positive for Bitcoin’s fans, they also point to oversupply and further investment risks.

Moreover, the policy on the monetary system often has a significant influence on the changes in Bitcoin value as well. Any signal of lowering interest rates or further monetary stimulus due to rising inflation can act as a bullish signal for the BTC. On the same note, the implementation of a more restrictive fiscal policy may upset the further gains in price.

Bitcoin’s Analysis of the Price Chart – The Key Levels of Resistance

Having a technical perspective, Bitcoin has topped at $108,000 level, which is its prior highest point. Through breaching this level, a higher ground may be opened that will extend to the higher price levels above $110 000 or even $120 000. But in order to open the gates for even higher gains and new levels of the uptrend, this level must be broken up, and if it won’t, it might result in consolidation or a price pullback.

The levels of interest are $100,000, a round number, and $98,000 operated as an accumulation area in the past. Should Bitcoin price decline to such levels, it will be possible to see a more significant selling to the $95,000 level.

Analysts’ Outlook and Future Projections

In the coming years, experts’ opinions are rather diverse about the future of BTC. When it comes to the brighter expectations, H.C. Wainwright believes the value of Bitcoin may spike up to $ 225k by the end of 2025. This bullish outlook can be attributed to expectations of a better regulatory framework, wider adoption by institutions, and the effect of the recent Bitcoin halving.

On the other hand, other analysts feel it is troublesome with declining funding rates and lean heavily on positive changes in regulations. It is likely for the current prices to remain sustainable; there will soon be a renewed interest by the market players and the necessary switch to long positions. Without these factors, Bitcoin could take several weeks or even months to consolidate or presently correct downwards as it happened in mid-December 2018.

Institutional and Retail Investor Sentiment

Holding Bitcoin continues to be an important factor in determining fluctuations in the price of the digital currency. Several big companies like BlackRock & Fidelity also showed their confidence as they have invested in bitcoins. The launch of Bitcoin ETFs has contributed to the enhancement of the credibility of this digital currency as an investment asset with the attraction of both institutional and individual investors.

Another factor is the mood in the stock market of the small investors acting as retailers in the markets to make a purchase. Most of the articles discussed the fact that the recent rise of interest in Bitcoins, primarily in developing countries explained the rising prices. However, when the retail participation decreases, the trends may denote some sort of slowing down which supports the bear factors causing the funding rates to drop.