Bitcoin’s brief rally to $100K triggers record 5.4K BTC monthly outflow
2025.01.07 14:58
Bitcoin (BTC) closed a daily candle at $102,180 on Jan. 6 after another round of positive ETF inflows worth $978.6 million. However, prices dropped sharply on Jan. 7 as traders expected BTC to retest the $100,000 level.
Despite these short-term BTC drawdowns, significant investor activity was observed on major exchanges, indicating a bullish urgency.
Bitcoin investors on Binance hint at accumulation
Burak Kesmeci, a verified analyst at CryptoQuant, highlighted that the 14-day simple moving average (SMA14), which tracks Binance’s netflow, has turned negative. As illustrated in the chart, each time the SMA14 has turned negative, BTC has exhibited a bullish shift in the charts.
Bitcoin exchange netflow on Binance. Source: CryptoQuant
Additionally, Bitcoin outflows on Binance reached 5,407 BTC, the highest amount over the past month. In line with the developments, the analyst said,
“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.”
In cohesion with Binance traders, US retail investors also indicated a revival of buying pressure after the Coinbase premium index turned positive in 2025. The index also moved above the SMA14, a strong bullish signal. Previously, when the index crossed above the SMA14 line, BTC moved from $69,000 to $108,000 in Q4 2024.
Related: Bitcoin gurus see these BTC price levels hitting next as $100K holds
Bitcoin should hold $98,000 to hit new ATHs
The Bitcoin community’s $100,000 celebration was cut short, as BTC nullified its previous day’s returns. However, from a technical perspective, it does not invalidate the bullish market structure.
Bitcoin 4-hour chart. Source: Cointelegraph/TradingView
As illustrated in the chart, Bitcoin’s current move from above $102,000 to under $98,000 is between liquidity pools. Liquidity pools are areas where traders place their positions, such as limit orders, sell orders, stop losses, and take profits. Hence, the price often oscillates between these regions.
BTC’s rise above $99,000 on Jan. 6, cleared the equal highs (EQ) created on Dec. 21 and Dec. 26. Sellers sold their positions around the supply zone later on, leading to the current price decline.
Considering the same market behavior, BTC could clear the equal lows around $97,377 and $96,700 before bouncing from the order block at $96,700.
Thus, a daily close above $97,000-$98,000 will allow Bitcoin to retain its bullish structure.
Michael Van de Poppe, founder of MNCapital, highlighted a similar price level for retesting after BTC exceeded $100,000 over the first week of 2025. The analyst said,
“I’d like to see $98,000 hold. If that holds, then I’m expecting a new ATH to come.”
Related: How high can Bitcoin price go?
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
