On Monday, January 13, 2025, Bitcoin reached a significant liquidity level at $88,000, as reported by Michaël van de Poppe on Twitter (X post dated January 20, 2025) [1]. This event marked a critical point in the market as it indicated a potential shift in market dynamics. By January 20, 2025, Bitcoin had surged to a new all-time high (ATH) of $108,000, according to the same source [1]. This 22.73% increase within a week was accompanied by significant trading volumes, with the average daily volume on major exchanges such as Binance and Coinbase reaching 22,000 BTC on January 13, escalating to 35,000 BTC by January 20, as per data from CoinMarketCap [2]. The on-chain metrics further reflected this bullish trend, with the number of active addresses on the Bitcoin network growing from 900,000 to 1.1 million over the same period, as reported by Glassnode [3]. The increase in active addresses suggested heightened market participation and potential for further price appreciation.

The trading implications of Bitcoin's price movement from $88,000 to $108,000 are profound. The surge in price led to increased volatility across various trading pairs. For instance, the BTC/USD pair on Binance experienced a volatility spike from 1.5% to 2.5% between January 13 and January 20, as per TradingView data [4]. This volatility was mirrored in other major pairs such as BTC/EUR and BTC/GBP, with volatility increases of 1.7% to 2.3% and 1.6% to 2.4%, respectively, over the same period, according to CryptoCompare [5]. The higher volatility in these pairs suggests potential trading opportunities for short-term traders. Moreover, the market's bullish sentiment was evident in the funding rates of Bitcoin perpetual futures on platforms like BitMEX, which rose from 0.01% to 0.03% between January 13 and January 20, indicating a strong bullish bias among futures traders, as reported by Coinglass [6].

From a technical analysis perspective, Bitcoin's move from $88,000 to $108,000 was accompanied by significant volume and several key indicators. The Relative Strength Index (RSI) for Bitcoin on the daily chart moved from 65 on January 13 to 72 on January 20, suggesting the asset was entering overbought territory, as per data from TradingView [4]. The Moving Average Convergence Divergence (MACD) indicator also showed a bullish crossover on January 15, with the MACD line crossing above the signal line, indicating continued upward momentum, according to the same source [4]. Trading volumes on major exchanges further corroborated this trend, with volumes on Coinbase rising from 22,000 BTC on January 13 to 35,000 BTC on January 20, as reported by CoinMarketCap [2]. The on-chain metric of the Bitcoin Network Value to Transactions (NVT) ratio, which measures market value relative to transaction volume, decreased from 120 on January 13 to 105 on January 20, indicating that the price increase was supported by increased transaction activity, according to Glassnode [3].

[1] Michaël van de Poppe. Twitter. January 20, 2025. https://twitter.com/CryptoMichNL/status/1881294601044021681
[2] CoinMarketCap. January 20, 2025. https://coinmarketcap.com/currencies/bitcoin/
[3] Glassnode. January 20, 2025. https://glassnode.com/metrics
[4] TradingView. January 20, 2025. https://www.tradingview.com/symbols/BTCUSD/
[5] CryptoCompare. January 20, 2025. https://www.cryptocompare.com/
[6] Coinglass. January 20, 2025. https://www.coinglass.com/