From the second week of January, prices were driven more by where money was flowing than by daily headlines. staying under control in the US helped support risk-taking, but strong pushed expectations for further out, leading to a brief pullback in risk assets.
That pause did not last long. Strong inflows into spot Bitcoin ETFs and renewed institutional buying, including purchases by , helped buyers regain control later in the week.
Together with this, Bitcoin has been testing the same sideways price range it has traded in since November. As a result, the area around $95,000 has become the key level to watch, as it is likely to decide Bitcoin’s short-term direction.
Muted Macro Signals Leave Capital Flows in Control
A key macro factor supporting Bitcoin in recent days has been steady progress on disinflation, with the outlook for US inflation staying under control. Markets saw inflation coming in line with expectations as easing pressure on the Federal Reserve, which helped support risk assets.
That support weakened after the January 9 employment report showed the labor market remained strong. This reduced expectations for an early interest rate cut. The probability of a cut by March fell, and expectations shifted toward June, triggering profit-taking in Bitcoin. The reason mattered more than the move itself. The pullback was driven by changes in interest rate expectations and broader risk appetite, not by negative Bitcoin-specific news.
The tone improved again at the start of the week. Strong inflows into spot Bitcoin ETFs and fresh purchases by MicroStrategy brought attention back to institutional demand. Heavy one-day ETF inflows, in particular, helped push Bitcoin back toward the $95,000 level.
Institutional Demand and Portfolio Rotation Effect
A key theme in recent days has been the relative strength of Bitcoin compared with technology stocks. While tech shares have struggled, especially in the Nasdaq, some market participants believe large investors are rotating out of slow-moving tech stocks and into alternative risk assets such as Bitcoin.
On the regulatory side, delays such as the postponement of the Clarity Act continue to add uncertainty. However, regulation was not the main driver of price action this week. Instead, ETF inflows and institutional buying played a bigger role.
In short, uncertainty remains across markets. But as long as capital continues to flow into Bitcoin, prices can remain supported despite that uncertainty.
Bitcoin Technical Outlook
The daily chart shows that Bitcoin has traded in a wide range between about $85,150 and $94,700 for a long period. With the latest rise, the price moved above the top of this range near $94,700 and briefly pushed past the $95,000 level.
What makes this move important is what sits just above that area. Around $95,200 lies the three-month exponential moving average, which often acts as a medium term trend marker. This means Bitcoin is trying to break two barriers at the same time. One is the old range high, and the other is this key moving average. Because of this, the move looks more like a breakout followed by a retest, rather than a clean and decisive breakout.
Price action supports this view. Buying was strong at first, but follow-through has been limited. The market is now testing the $94,700 to $95,200 zone. If Bitcoin can hold above this area, it would suggest that former resistance is turning into support and could open the door for the next upward move.
Sustained Movement Above $95K Could Open the $100K Door
In the upward scenario, the first target area will be tracked at the $100,630-102,180 band.
- $100,630: Fib 0.382 and first major resistance
- $102,180: Intermediate resistance/psychological threshold strengthening zone
If the price can move firmly above this zone, the recent rise could shift from a short-term reaction into a stronger trend. In that case, the shorter-term moving averages would have room to move higher and sit clearly above the three-month EMA, which would strengthen the overall trend structure.
If this move develops into a sustained trend, the next upside targets from a technical perspective are as follows:
- $105,400 (Fib 0.50)
- $110,200 (Fib 0.618)
- $117,000 (Fib 0.786)
Over the longer term, the main resistance level remains near the previous peak around $125,670.
The Stochastic RSI is currently close to overbought levels. This by itself does not signal a sell. If the price stays above support after the breakout, the indicator can cool off while the price holds steady. That kind of pause often creates a stronger base for the next move higher. This would be especially constructive if Bitcoin continues to trade near the $94,700 to $95,200 zone for a few days.
Downside Scenario: Price Dropping Below $94,700 Could Return to the ’Band’ at $85,150
The key threshold to watch for if the breakout fails is $94,700:
- Persistence below this level could pull Bitcoin back into the horizontal channel, increasing the risk of a trap breakout.
- In this scenario, the first support zone is $91,000, and a significant break could bring the BTC price back to the lower boundary of the horizontal band at $85,150.
The key point to watch is not just how deep a pullback might be, but what causes it. If risk appetite weakens because of a macro shock such as tighter interest rate expectations, sudden geopolitical tension, or regulatory surprises, selling pressure could build quickly. However, if any decline remains a normal retest after the breakout, those dips could offer buying opportunities.
In short, Bitcoin’s near term direction depends on whether the price can stay above the $94,700–$95,200 zone. From a macro perspective, inflation staying under control supports risk appetite, while uncertainty around the Fed’s rate cut timeline keeps volatility elevated. Even so, strong spot ETF inflows and continued institutional buying are reinforcing Bitcoin’s role as a risk asset with a growing place in institutional portfolios.
Under the base case, holding above $95,000 keeps the path open for a gradual move toward the $100,630–$102,180 area. On the downside, a sustained break below $94,700 would raise the risk of a deeper pullback toward the $91,000–$85,150 range.
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Disclaimer: This article is written for informational purposes only. It does not intend to encourage the purchase of any asset and does not constitute a solicitation, offer, recommendation, or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, and therefore any investment decision and the associated risk belong to the investor. Additionally, we do not offer any investment advisory services.
