Bitcoin (BTC) closed its daily candle on January 6 at $102,180 after another positive ETF inflow worth $978.6 million. However, the price plunged on January 7 as traders expected BTC to retest the $100,000 level.
Despite this short-term decline in BTC, significant investor activity is observed on major exchanges, indicating the urgency of the bull run.
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 you can see from the chart, whenever SMA14 turns negative, BTC has seen a bullish move on the chart.
Binance’s Bitcoin exchange Netflow. Source: CryptoQuant
Additionally, Bitcoin outflows on Binance reached the highest amount of 5,407 BTC last month. Reacting to the development, the analyst said:
“Both indicators confirm that investor behavior on Binance is tilting towards accumulation. This trend strongly supports the argument that Bitcoin price will rise in the near term.”
In solidarity with Binance traders, US retail investors signaled that buying pressure will revive after the Coinbase Premium Index turns positive in 2025. The index also moved above SMA14, a strong bullish signal. Previously, BTC rose from $69,000 to $108,000 in Q4 2024 when the index crossed the SMA14 line.
Related: Bitcoin Experts Believe $100,000 Holding Will Take BTC Price Level to Next Level
Bitcoin would need to have $98,000 to hit a new ATH.
The Bitcoin community’s $100,000 celebration came to a halt when BTC negated the previous day’s gains. However, from a technical perspective, this does not invalidate the bull market structure.
Bitcoin 4 hour chart. Source: Cointelegraph/TradingView
As you can see in the chart, Bitcoin’s current move from above $102,000 to below $98,000 is between liquidity pools. Liquidity pools are areas where traders place positions such as limit orders, sell orders, stop losses, and take profits. Therefore, prices often fluctuate between these regions.
As BTC rose above $99,000 on January 6, the identical highs (EQ) created on December 21 and December 26 were erased. Sellers later sold their positions around the supply zone, leading to the current price drop.
Considering the same market action, BTC may clear the same lows of around $97,377 and $96,700 before rebounding to $96,700 at the order block.
Therefore, if the daily closing price exceeds $97,000-$98,000, Bitcoin may maintain a bullish structure.
Michael Van de Poppe, founder of MNCapital, highlighted similar price levels for BTC to retest after it surpassed $100,000 in the first week of 2025. The analyst said:
“I want to keep $98,000. If so, I expect a new ATH to come out.”
Related: How Much Can Bitcoin Price Rise?
This article is written for general information purposes and should not be considered legal or investment advice. The views, thoughts and opinions expressed herein are those of the author alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.