Bitcoin retreats from its $98K peak, yet on-chain metrics indicate a strengthening landscape. Spot ETF inflows are experiencing a significant surge, while the derivatives markets are adopting a more cautious stance. Bitcoin is currently priced at $93,752, having pulled back from its recent peak of $98,000. However, this retreat appears to be more of a healthy consolidation rather than a breakdown in the overall trend. Latest market pulse report, released on January 19, indicates that momentum indicators have cooled yet still sit above neutral—a trend that usually signals continuation rather than reversal. The timing coincides with a severe $785 million long liquidation cascade that momentarily drove BTC to $92,000 earlier this week. Yet institutional appetite remains unwavering.
Spot Bitcoin ETFs saw an impressive $1.4 billion in net inflows last week, marking the most significant weekly accumulation since October 2025. According to sources, these flows have shifted “beyond statistical extremes,” indicating a real trend of institutional re-accumulation rather than mere noise. MicroStrategy remains steadfast in its acquisition strategy, purchasing an additional 13,627 BTC, which elevates its total holdings to 687,410 coins valued at more than $51 billion. When the biggest corporate holder continues to accumulate during market pullbacks, it usually has significant implications. Trading volumes in ETF products have surged in tandem with the influx of capital, yet sources highlights a potential risk: the high profitability among holders may lead to immediate profit-taking pressure.
The futures market reveals a more intricate narrative. Open interest has seen a slight uptick, indicating that speculative interest is gradually reemerging with caution. However, funding rates have significantly decreased—long positions are no longer incurring the premiums seen a few weeks back. Perpetual CVD continues to show a negative trend, indicating that sell-side pressure is still prevalent in leveraged markets. Options traders are indicating heightened uncertainty, as implied volatility hovers close to the upper limits of its historical range when compared to realized levels. Downside protection continues to be sought after. Network fundamentals are steadily advancing behind the scenes. Active addresses are currently subdued, yet they are showing an upward trend. Transfer volume keeps on rising. Fees have increased slightly—not a surge, but a trend that leans towards the positive. The primary issue at hand is that short-term holder supply continues to be high, which keeps the market vulnerable to fluctuations in price. In times of volatility, these newer coins often take the lead in movement. Spot market dynamics present a glimmer of optimism. The net buy-sell imbalance has surged past its upper statistical band, signaling that sell-side pressure is finally subsiding. Trading volume has seen a modest increase.
Sources describes spot demand as “fragile and uneven,” yet showing signs of improvement. The $90,000-$92,000 zone has established itself as a near-term support level following the absorption of this week’s liquidation cascade. A sustained break below could potentially initiate another round of long unwinding. On the upside, a strong reclaim of $95,000 would indicate that the consolidation phase is coming to a close. The influx of robust ETF investments alongside positive on-chain indicators sets a favorable stage; however, the current derivatives positioning indicates that the market may not be prepared to take on significant long positions at this time. With a market cap of $1.9 trillion, Bitcoin requires substantial capital to influence its price movements. The ETF flow data indicates that capital is making its way in. The lingering question as we approach late January is whether it will be sufficient to overcome resistance.