On January 6th, Bitcoin (BTC) finished its daily session at a price of $102,180 following another influx of ETF investments worth approximately $978.6 million. Nevertheless, the value of BTC plummeted significantly on January 7th as traders anticipated it to revisit the $100,000 mark.
Even with temporary declines in Bitcoin’s value, there has been noticeable trading activity on leading exchanges, suggesting a strong and eager appetite among investors for potential future gains.
Bitcoin investors on Binance hint at accumulation
According to analyst Burak Kesmeci of CryptoQuant, who is verified in his field, he pointed out that Binance’s netflow 14-day simple moving average (SMA14) has recently turned negative. Previous times when this happened, the SMA14 has been followed by a bullish trend in BTC’s price chart. This can be seen in the provided graph.
Moreover, a record high of 5,407 Bitcoins were withdrawn from Binance, marking the largest outflow in the past month, according to the latest data. This trend aligns with the observations made by the analyst.
“Both metrics confirm that investor behavior on Binance is leaning toward accumulation. This trend strongly supports the case for upward movement in Bitcoin’s price over the short term.”
aligning with Binance traders, it was observed that US retail investors too started showing renewed interest in buying Bitcoin, following the Coinbase premium index becoming positive in 2025. This index also surpassed the Simple Moving Average (SMA)14, a robust bullish indicator. In the past, when the index breached the SMA14 line, Bitcoin’s price rose significantly from $69,000 to $108,000 in Q4 2024.
Bitcoin should hold $98,000 to hit new ATHs
The excitement among Bitcoin enthusiasts over the potential reaching of $100,000 had to be put on hold when Bitcoin failed to maintain its gains from the previous day, instead erasing those returns. Despite this setback, viewed from a technical standpoint, it does not undermine the overall bullish trend in the market structure.
From my observations, it appears that Bitcoin‘s recent fluctuation from around $102,000 to under $98,000 is happening within the vicinity of liquidity pools. These pools serve as zones where traders establish their positions, be it limit orders, sell orders, stop losses, or take profits. As a result, the price tends to sway back and forth within these regions due to the constant buying and selling activities.
On January 6th, Bitcoin surpassed $99,000, setting new highs that matched those established on December 21st and 26th. Later on, sellers cashed out their holdings within a specific area (supply zone), causing the current price drop.
Looking at similar price patterns, Bitcoin might reach the comparable low points of approximately $97,377 and $96,700. After that, it could potentially rebound from the significant buy/sell orders located around $96,700.
Thus, a daily close above $97,000-$98,000 will allow Bitcoin to retain its bullish structure.
According to Michael van de Poppe, founder of MNCapital, there’s a possibility that Bitcoin might retest a comparable price point following its surpassing of $100,000 in early 2025 – a prediction he made. In simpler terms, the analyst suggests that if Bitcoin reaches $100,000 by the start of 2025, it could potentially return to a similar price later on.
“I’d like to see $98,000 hold. If that holds, then I’m expecting a new ATH to come.”
This piece is designed primarily to provide general knowledge and isn’t meant to serve as legal or financial guidance. The perspectives, beliefs, and viewpoints shared here belong solely to the writer and may not align with those held by CryptoMoon.
Read More
- HBAR PREDICTION. HBAR cryptocurrency
- IMX PREDICTION. IMX cryptocurrency
- TRB PREDICTION. TRB cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- LDO PREDICTION. LDO cryptocurrency
- JTO PREDICTION. JTO cryptocurrency
- FLOKI PREDICTION. FLOKI cryptocurrency
- XDC PREDICTION. XDC cryptocurrency
- Dandadan Shares First Look at Season Finale: Watch
- OKB PREDICTION. OKB cryptocurrency
2025-01-07 23:13