Bitcoin Market Analysis: Mixed Signals Amid Institutional Accumulation and Bearish Concerns

Despite Bitcoin’s remarkable rally last year, the MVRV ratio—used to gauge market sentiment—has yet to breach the 3.2 level, a historical threshold for “extreme euphoria.” If reached, this would correspond to a price of approximately $132,000. Historically, Bitcoin has spent just 5% of its trading days above this level, underscoring its rarity and the market’s restraint this cycle. Despite #Bitcoin `s impressive rally last year, MVRV levels above 3.2 – the typical threshold for extreme euphoria – haven’t been reached this cycle. If #BTC were to reach this level, it would correspond to a price of ~$132K: https://t.co/aqPpGPMKgB pic.twitter.com/Vf1Hj9gD9M — glassnode (@glassnode) January 8, 2025 Institutions Accumulate, Retail Demand Fades Following Bitcoin’s sharp price drop on December 21, institutional investors acted swiftly, accumulating over 34,000 BTC at prices below $95,000 within the past 30 days. While retail demand remains at its lowest in five years, steady on-chain accumulation since June 2024 signals that institutions are focused on the long-term outlook for Bitcoin. After the big $BTC dump on Dec 21, institutions wasted no time, scooping up over 34,000 BTC under $95K in the last 30 days. Retail demand may be at a 5-year low, but on-chain accumulation has been steady since June 2024. Institutions are playing the long game. pic.twitter.com/Y1ymidqRlt — Kyledoops (@kyledoops) January 8, 2025 Technical Patterns and Key Support Levels Bitcoin recently invalidated a bearish head-and-shoulders pattern after breaching the right shoulder. However, a swift reversal erased those gains, pulling the price back below the pattern and renewing bearish sentiment. The recent downswing has seen Bitcoin fall below a critical demand zone of $95,400–$98,400, where 1.77 million addresses purchased over 1.53 million BTC. If selling pressure drives Bitcoin below $92,000, the next major support lies between $74,000 and $78,000, raising fears of a potential crash. On the upside, Bitcoin must reclaim the $100,000 level to negate the bearish outlook and aim for new all-time highs. Short-Term Recovery or Further Decline? On the 4-hour chart, the TD Sequential indicator has presented a buy signal, suggesting a potential rebound to $98,600, where a $35 million liquidation zone exists. However, macroeconomic conditions and a weakening demand zone suggest caution remains warranted. ETF Inflows Signal Institutional Interest On January 7, Bitcoin spot ETFs recorded a net inflow of $52.39 million, with BlackRock’s IBIT ETF contributing $596 million. The total net asset value of Bitcoin spot ETFs now stands at $110.12 billion, indicating continued institutional interest despite market volatility. On January 7, the total net inflow of Bitcoin spot ETF was 52.3899 million US dollars, and the net inflow of BlackRock ETF IBIT was 596 million US dollars. The total net asset value of Bitcoin spot ETF is currently 110.115 billion US dollars. https://t.co/59u0BnDSW8 pic.twitter.com/MRH4P1K7jZ — Wu Blockchain (@WuBlockchain) January 8, 2025 In conclusion, Bitcoin’s short-term outlook suggests a potential rebound, but a drop below $92,000 could spell trouble, leading to a steep decline toward $74,000. Reclaiming $100,000 is crucial for invalidating the bearish scenario and resuming its upward trajectory. #Bitcoin $BTC is back below $100,000! Now what?? Let`s dive in — Ali (@ali_charts) January 8, 2025 Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news ! Image Source: sinenkiy/ 123RF // Image Effects by Colorcinch

NullTx

You can visit the page to read the article.
Source: NullTx