Bitcoin slightly drops below $101k despite strong demand from ETFs 📉

3:51 pm 7 January 2025

Sentiments of the cryptocurrency market are a little less optimistic today, and it seems that the largest cryptocurrency is facing a test of momentum. Bitcoin's price falling despite strong ETF demand may signal, that long term addresses are selling Bitcoins at this point, with higher pace amid recent rebound from $92k to $102k.

  • Bitcoin's price retreated sharply below $101,000 today and is close to testing the EMA50 (orange line) at $100,500. Recent positive market sentiment has also been fuelled to some extent by the possibility of a pro-Bitcoin candidate in Canada, Pierre Poilievre, coming to power and possibly replacing the outgoing Justin Trudeau
  •  As of December 2024, ETFs had accumulated more than 51,500 BTC against less than 14,000 produced by Bitcoin miners. BTC stocks on exchanges have also fallen significantly, setting the stage for a rebound if demand for exchange-traded funds in the United States continues.
  • Recent data on BTC inflows have been performing strongly, with more than 900 million net inflows on January 3 and BTC purchases worth nearly $911 million yesterday, January 6. Wall Street sentiment and the dollar will be key to market sentiment. If the dollar's weakness continues and does not go hand in hand with declines in the indexes, bitcoin could further benefit from such a scenario.
 

Source: XTB Research, Bloomberg Finance L.P.

Bitcoin (H1 interval)

A drop below $92,000 could indicate that Bitcoin is pursuing a bearish head-and-shoulders pattern scenario, with a potential downside range as low as $80,000. The nearest strong resistance is around the ATH at $110k. The EMA50 may provide important short-term support.


Source: xStation5

Bitcoin's historically reverted correlation with the US dollar seems relatively limited at this point. The cryptocurrency does not appear to be a direct beneficiary of either USD weakness or strength. 


Source: xStation5

The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world.