Despite the current correction, analysts expect bitcoin to recover to $105,000 after the New Year holidays and the return of institutional investors to the market.
The main cryptocurrency has been trading below the psychological mark of $100,000 since December 19. According to the cryptocurrency screener Cryptovizor, the current price is 11% below the all-time high of $108,000, recorded on December 17.
1-day chart of BTC/USDT. Source: Cryptovizor cryptocurrency screener
According to Ryan Lee, chief analyst at Bitget Research, the decline in bitcoin price is a natural consequence of low liquidity during the holiday season.
"After Christmas, market activity usually recovers. Funds are expected to actively take positions in sectors that could benefit from Trump's (Donald Trump) upcoming inauguration. The expected trading range for bitcoin this week is $94,000–105,000," explained the analyst in an interview.
While bitcoin struggles to return to six-figure territory, US spot bitcoin ETFs continue to hemorrhage funds. According to Farside Investors, the net outflow over the past four days has exceeded $338 million.
Movement of funds in US bitcoin ETFs. Source: Farside Investors
Notably, ETFs were the main driving force behind bitcoin's growth in 2024, accounting for about 75% of new investments, helping the price surpass $50,000 by February 15.
Despite the neutral funding rate on Binance (0.01%), the technical analysis warns of a possible continuation of the correction.
Crypto analyst Rekt Capital noted on social media platform X: "Bitcoin showed an attempt at growth, but then the price began to retreat to local lows... Overall, as previously lost support levels turn into new resistance, further decline should be expected."
1-week chart of BTC/USD. Analysis: Rekt Capital
Later, he added that to confirm the next trend, it is necessary to wait for the weekly candle to close.
However, long-term prospects remain optimistic — according to the forecast by analytics company Matrixport, the improvement in macroeconomic conditions will lead to bitcoin growing to $160,000 in 2025.