- Bitcoin’s price drop from ATH signals shifting market sentiment, with high liquidity.
- Key support at $102K holds, while $105K resistance limits upward momentum.
- Whale activity and netflows indicate accumulation during rallies, influencing price.
Bitcoin this month had hit an all-time high (ATH) of $105,000, exciting investors and traders. However, the price has since pulled back to $102,381.72, reflecting a 2.58% decline over the past 24 hours.
This dip has raised concerns about the sustainability of Bitcoin’s rally, especially given the growing market volatility. Despite this, key metrics highlight Bitcoin’s continued dominance in the crypto space.
Key Observations on Bitcoin’s Market Dynamics
Bitcoin’s price drop from its ATH suggests a shift in market sentiment. The increased selling pressure has caused a retreat from the $105,000 level.
Still, trading volume remains high, with $60.12 billion exchanged in the past 24 hours, signaling strong liquidity. This indicates sustained investor interest, even as short-term direction remains uncertain. Traders are closely monitoring the market for signs of stabilization or further decline.
Related: Bitcoin’s $832B Realized Cap Sets ATH as Capital Inflows Ease
Critical Support and Resistance Levels
Bitcoin has repeatedly tested the $102,000 level, establishing it as a significant support zone. A break below this could trigger a deeper correction, potentially pushing the price toward the psychological $100,000 mark.
However, if Bitcoin holds above $102,000, it may have the potential to test higher levels. Immediate resistance sits at $104,000, where the price has struggled to recover in recent days.
The major resistance remains at $105,000, the recent peak, where selling pressure has been notably strong. Bitcoin’s ability to break through these resistance levels will determine if it can resume its upward momentum.
Whale Activity and Netflows Drive Trends
Whale activity and netflows have played a critical role in Bitcoin’s recent price movements. Data shows that outflows from exchanges have outpaced inflows in recent weeks, suggesting that large investors are holding onto their Bitcoin during rallies.
The large withdrawals coincide with periods of price appreciation, indicating that whales may be accumulating. Conversely, inflows have surged during downturns, suggesting that investors may be looking to take profits. This dynamic has contributed to the price fluctuations observed in January.
Related: Bitcoin Volatility Spikes as Trump Skips Crypto in His First Action
Price Forecast for February 2025
Looking ahead to February 2025, Changelly blog experts predict that Bitcoin will maintain a strong position in the market. The lowest expected value is $117,431.16, with a potential peak of $129,993.64.
The average trading value for the month is expected to be around $123,712.40. These forecasts suggest that while short-term volatility may persist, Bitcoin could maintain a steady upward trend, supported by robust demand and strategic whale activity.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
