Bitcoin is currently stabilizing within the range of $104k to $116k as ETF flows show signs of cooling. A break above 116k could revive the uptrend, while a fall below 104k may signal further decline. As per a new research, Bitcoin (BTC) is presently going through a crucial stage, stabilizing between $104,000 and $116,000 after a major investor absorption.
The price movement of the cryptocurrency within this range is viewed as a possible indication of either a resurgence of the upward trend or a continued downturn. The current market behavior is characterized by Bitcoin trading near 112,000, filling the so-called ‘air gap’ between 108,000 and 116,000. This activity indicates a positive ‘buy-the-dip’ attitude among investors, though it does not rule out the chance of additional contraction. Historical trends suggest that the 104,000 to 114,000 band has been a corridor for sideways consolidation prior to decisive trends. Short-term holders have faced a significant decline in profitability during recent sell-offs, with levels dropping to 42% before recovering to 60%. The market finds itself in a neutral yet delicate position following this rebound, with any renewed momentum dependent on Bitcoin regaining the range of $114,000 to $116,000.
A return to these levels would probably enhance overall short-term holder profitability and bolster the bullish argument. Off-chain sentiment indicators, including futures funding rates and ETF flows, show a varied landscape. Futures funding stays neutral but is at risk due to weakening demand, and Bitcoin ETF inflows have noticeably decreased. In the past, Bitcoin ETF flows were primarily influenced by directional spot demand, unlike Ethereum (ETH), where the flows showed a combination of spot demand and cash-and-carry arbitrage. Looking ahead, Bitcoin’s capacity to sustain the $104,000 mark is essential. A decline below this level could trigger a return to post-all-time-high exhaustion phases, with possible downside targets between $93,000 and $95,000.
On the other hand, a breakout above $116,000 might indicate increased demand and a potential upward trend. The overall market atmosphere continues to be marked by uncertainty, evident in the careful actions of both institutional and retail investors. The slowing ETF inflows and stable futures funding rates highlight the importance of being cautious as Bitcoin moves through this critical range.