BTC News: Bitcoin Bulls Eye $105K as Derivatives Data Signals Strong Momentum

Bitcoin (BTC) has shown signs of resilience, with derivatives and margin data suggesting bullish sentiment despite recent price volatility. After rebounding 6.5% from a Dec. 23 low of $92,458, BTC is gearing up to retest its $98,000 resistance and potentially rally to $105,000.Key Highlights:Strong Derivatives Demand:Bitcoin futures maintain a 12% premium over spot prices, reflecting robust demand for leveraged long positions.Options market data shows put options trading at a 2% discount compared to call options, indicating minimal fear of a correction.Traditional Market Influence:The S&P 500 erased its December losses, and 10-year Treasury yields rose to 4.59%, hinting at market optimism.Higher Treasury yields reflect inflation expectations, benefiting scarce assets like Bitcoin during liquidity injections.Margin Markets Favor Long Positions:The long-to-short margin ratio at OKX stands at 25x, underscoring bullish positioning. Historical trends show ratios above 40x signal overconfidence, while levels below 5x indicate bearish sentiment.Economic Uncertainty and Stagnation Fears:Bitcoin's (BTC) correlation with the S&P 500 remains high at 64%, as concerns over economic stagnation weigh on sentiment.The Federal Reserve scaled back rate-cut projections for 2025, easing fears of immediate corporate earnings declines and real estate financing challenges.Outlook:Despite economic uncertainties and record outflows from BlackRock’s iShares Bitcoin Trust ETF (IBIT), BTC’s ability to recover from the $92,458 retest reinforces bullish momentum. Market sentiment supports a short-term rally to $105,000, with potential upside beyond this milestone.