- Bitcoin dropped nearly 6% in 24 hours after briefly surpassing $100,000.
- Bitcoin’s spot ETF saw $52.39 million inflows, while BlackRock’s ETF IBIT received $596 million.
- The TD Sequential indicator shows a potential rebound if $97,000 support holds, with $92,000 as the next level.
Bitcoin (BTC) recently experienced a turbulent period in the market. After several days of consolidation, BTC broke above the $100,000 mark, capturing attention as it seemed poised for further gains. However, the momentum could not be sustained, and BTC quickly reversed course, falling below $100,000 and continuing to lose ground. In the last 24 hours, BTC has seen a sharp decline, dropping by nearly 6%.
The overall crypto market took a hit as well, with a massive $242 million liquidated in just four hours during this recent downturn. A significant number of long positions were hit hard as BTC fell below $98,000, marking a rough period for traders.
Bitcoin Shows Signs of Recovery
Despite the bearish trend, there are signs of potential recovery. Data from SoSoValue revealed that on January 7, Bitcoin’s spot ETF saw a total net inflow of $52.39 million, while BlackRock’s ETF IBIT saw a much larger net inflow of $596 million. The total net asset value of Bitcoin’s spot ETF now stands at $110.115 billion, indicating sustained investor interest despite recent setbacks.
Crypto analyst Ali Martinez pointed out a promising signal on Bitcoin’s hourly chart. The TD Sequential indicator is flashing a buy signal near the $97,000 mark, just above the setup trend line and the 200-hour moving average. If this support holds, BTC could potentially rebound. However, if BTC falls below $97,000, it could open the door for further losses, with the next potential support level at $92,000.
In a more optimistic sign, data shows that 61.28% of traders on Binance with open BTC positions are currently betting on the price going up. This bullish sentiment could indicate that many are confident Bitcoin will recover, even amidst the current market turbulence.
Bitcoin’s performance remains volatile, and traders are closely watching for signs of recovery. The next few days will be crucial in determining whether the support levels hold or if the market sees further declines.
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