Key Points
- Bitcoin’s price has dropped over 2%, closing at the lowest daily candlestick since January 15, 2025.
- Despite macroeconomic uncertainty and a falling trend, Bitcoin has established robust support above $91K.
Bitcoin’s price has seen a 2% decrease over the past 24 hours, closing Tuesday at its lowest daily candlestick since January 15, 2025.
The leading cryptocurrency fell to as low as $94.8K in the past 24 hours before slightly rebounding to trade around $96.2K on Wednesday, February 12, during the mid-London session.
Price Trends Amid Political Climate
Since the start of US President Donald Trump’s second term, Bitcoin’s price has been caught in a downward trend. The resistance range between $108K and $109.3K has proven difficult for buyers to overcome, even with the increase of institutional investors.
Furthermore, the price of Bitcoin has formed a potential double top around $108K, accompanied by a bearish divergence of the weekly Relative Strength Index (RSI). However, Bitcoin has established strong support above $91K, which was retested earlier this month. As a result, it’s likely that Bitcoin’s price will retest the $91K support level again before potentially rebounding towards the all-time high (ATH).
If the support level around $91K is breached, the leading cryptocurrency will continue to drop towards the support range between $75K and $85K.
Investor Sentiment
The short-term macroeconomic uncertainty, exacerbated by the White House’s tariff wars against its trading partners, has impacted the overall bullish outlook for cryptocurrencies. Despite a surge in demand for gold leading to a recent surge towards ATH, Bitcoin’s price has struggled to re-ignite the bullish sentiment experienced during the fourth quarter of 2024 and earlier this year.
As a result, demand for Bitcoin from large-scale investors has remained relatively low. US spot BTC ETFs have registered low cash inflows in the past few days. Over the past two days, the US spot BTC ETFs recorded a net cash outflow of over $242 million. On Tuesday, only BlackRock’s IBIT registered a net cash inflow of about $23 million, leading to a net cash inflow of $56 million on Tuesday for US spot BTC ETFs.
Meanwhile, the overall supply of BTC on centralized exchanges has increased from 2.13 million to 2.22 million in the past week.
Future Predictions
The increasing discussions of altcoins and Bitcoin on various social media platforms have not translated into bullish sentiment. As a result, crypto analyst Ali Martinez has noted that now may not be the best time to purchase Bitcoin in anticipation of a potential bullish rally in the near future.
“Bitcoin funding rates are currently positive, while historically, the best buying opportunities have come when they turn negative. Keep an eye on the next shift,” Martinez noted.
The expected adoption of Bitcoin by nation-states will lead to the largest supply vs demand shock, hence fueling the macro bullish sentiment.
