Key Points
- Bitcoin’s price has fallen below $94,000 amid a 9% drop in the total crypto market cap.
- Despite the bearish market, some Bitcoin holders continue to withdraw their coins from exchanges.
The total valuation of the crypto market has seen a significant drop in the past three days, falling from $3.5 trillion to $3.2 trillion. This represents a nearly 9% decrease. The price of Bitcoin has also fallen, dropping below the $94,000 mark.
With high liquidations and changing dynamics in early 2025, fear is growing in the crypto market. This has led to speculation about a possible pullback in Bitcoin to the $86,000 level.
Analysis of Bitcoin Price
The BTC price trend on the 4-hour chart shows a strong correction phase after facing resistance at the $102,000 mark. This is due to significant selling pressure, leading to a bearish crossover of the 50 and 100 EMA lines.
The RSI line has reached the oversold boundary line. However, the BTC price is nearing the crucial support level of $92,118.
Despite the selling pressure, there is a chance of a bullish comeback from this level. The RSI line shows a minor divergence as it maintains a sideways shift while the BTC price falls. This could lead to a bearish continuation to $92,000 levels, or a bullish comeback resulting in a V-shaped recovery to challenge the 200 EMA line at $96,397.
Outflow from ETFs
Institutional support for Bitcoin has significantly declined during the recent pullback. On January 8, the net outflow of the 12 US-based spot Bitcoin ETFs was $582.90, with 8 ETFs recording outflow and 4 remaining with a net-zero flow.
Fidelity’s FBTC led the bearish pack with an outflow of $258.69 million. ARK and 21Shares followed with an outflow of $148.30M, and BlackRock sold $124.05M worth of Bitcoin.
The total net assets of Bitcoin ETFs have fallen to $106.8B, breaking the 3-day streak of positive inflows with a massive outflow. This marks the 2nd largest outflow in the history of Bitcoin spot ETFs, second only to the $680M outflow on December 19.
Bitcoin Open Interest and Liquidations
As bearish sentiment increases in the crypto market, Bitcoin’s open interest has fallen to $60.74 billion, a 2.23% decrease in the past 24 hours.
The long-to-short ratio has also dropped to 0.9436%, and the funding rates are at $0.0090. The recent sell-off has led to $480 million in liquidations over the past 24 hours. Of this, the bulls have lost $341 million, and the largest single liquidation occurred on the OKEx exchange in the BTC-USDT swap pair, worth $15.30 million.
Bitcoin Holders Continue to Withdraw from Exchanges
Despite the significant correction in the crypto market, some Bitcoin holders are continuing to withdraw their coins from exchanges. Over the past week, more than 22,000 Bitcoins, worth $2.10 billion, have been withdrawn.
The declining trend in exchange reserves is failing to increase artificial demand for Bitcoin in the market. As the BTC price continues to fall, the declining exchange reserves could act as a bullish catalyst once the market stabilizes.
