Bitcoin experienced a brief rally, surpassing the $100,000 mark, which triggered an outflow of 5,407 BTC from exchanges in a month—a record amount. The surge in price on January 6 saw Bitcoin closing above $102,000, driven by positive ETF inflows amounting to $978.6 million. However, the following day witnessed a sharp price drop, with expectations of Bitcoin retesting the $100,000 level.
Despite the short-term decline, investor activity on major exchanges signals bullish momentum. On Binance, netflow metrics, specifically the 14-day simple moving average, have turned negative, suggesting accumulation by investors. This behavior is consistent with past bullish trends when netflow was negative and supports potential upward movement for Bitcoin.
US retail investors also demonstrate increased buying pressure. The Coinbase premium index, recently turning positive, indicates a potential bullish trend. Historically, the index crossing the 14-day moving average coincided with significant price increases.
Bitcoin’s bullish structure remains intact despite the recent price rollback to below $98,000. Currently trading between liquidity pools, Bitcoin price movements are expected. Technical analysis shows Bitcoin cleared previous highs but encountered a sell-off near the supply zone, causing the decline. For Bitcoin to sustain its upward trajectory, maintaining support above $97,000 to $98,000 is crucial.
Analyst Michael Van de Poppe emphasizes the importance of Bitcoin holding at $98,000, suggesting that retaining this level could lead to new all-time highs. The Bitcoin community remains optimistic about further price gains as the market continues to demonstrate resilience amidst fluctuating trends.
