Bitcoin price surges above $100k despite notable exchange inflows
BTC reclaims $100K
Bitcoin's recent price movements have defied expectations with its gradual rise, even amid concerns from exchange netflows and overbought conditions on certain timeframes. Early during the week, Bitcoin saw a notable inflow of funds into exchanges, raising concerns over potential selling pressure.
Typically, increased exchange inflows signal that investors are preparing to liquidate positions. But despite this influx, Bitcoin's price steadily rose from January 13 onwards, challenging the initial assumption that increased supply would result in downward pressure. KriptoBaykusV2 pointed out that the Bitcoin transferred to exchanges was either not sold or quickly absorbed by market demand, allowing the price to continue climbing.
BTC price dynamics (January 2025). Source: CryptoQuant.
Bitcoin price outlook: Daily RSI remains in bullish territory
As of Friday, during the Asian session, Bitcoin broke above the significant $100,000 milestone for the second time in January 2025 and added a 2% gain, to reach $102,000. This latest price movement aligns with the notion that Bitcoin remains a resilient asset, capable of defying bearish signals when demand is strong. As Bitcoin pushed past the $100,000 milestone, it faced resistance near $102,000, and the key question for traders now is whether it can overcome the early January high of $102,700. However, short-term technical indicators, like the 4-hour Relative Strength Index (RSI), suggest the rally may be at risk of losing steam which means that the upward momentum could be challenged in the short term.
However, on a broader scale, the daily RSI remains in bullish territory, suggesting that the longer-term outlook remains positive. This divergence between short-term and long-term indicators highlights the uncertain path Bitcoin faces in the coming days. Thus, Bitcoin's future price action will likely depend on how demand responds to the inflows into exchanges and whether the asset can maintain upward momentum despite the increasing selling pressure typically associated with exchange inflows.
Following the release of US core inflation data, Bitcoin Open Interest on Binance rose to $10.96 billion. Bitcoin price surged over 12% this week, reclaiming the critical $100,000 level.
