Bitcoin Struggles at $90,000 Mark – Analysts Remain Optimistic Despite ETF Outflows

Bitcoin Consolidates in Narrow Trading Range

The world's leading cryptocurrency Bitcoin continues to move within a tight corridor, struggling around the $90,000 mark. While the digital benchmark currency gained one percent over the past seven days, it recorded a decline of 0.70 percent within the last 24 hours ^[1]. At press time, Bitcoin was trading at $90,336, with the $94,000 level from late November continuing to act as resistance ^[2].

The overall cryptocurrency market followed this trend, declining 0.55 percent over the past 24 hours ^[1]. Other leading altcoins also appear indecisive: Ethereum hovers around the $3,000 mark, while XRP attempts to hold above two dollars ^[1].

Massive Outflows from Bitcoin ETFs Weigh on Sentiment

A significant burden on price development is the ongoing net outflows from U.S. spot Bitcoin ETFs. According to Farside Investors, the index products recorded capital withdrawals totaling $1.377 billion over four consecutive trading days ^[1]. On the fourth day of this series, outflows amounted to $250 million, with only Fidelity's FBTC fund recording a positive inflow of approximately $7.9 million ^[2].

The declining ETF inflows coincide with a period of lower trading activity and ongoing uncertainty about the regulatory framework in the United States, particularly regarding ongoing legislative initiatives in Congress ^[1].

Liquidations in Futures Market Intensify Downward Pressure

Parallel to the ETF outflows, extensive forced liquidations occurred in the futures market. Within 24 hours, Bitcoin positions worth $50.8 million were liquidated, with approximately 60 percent attributable to long positions ^[1]. Open interest in Bitcoin futures declined by 0.77 percent, while funding rates simultaneously dropped by 26.89 percent – an indicator of decreasing willingness for speculative long engagements ^[1].

Additional pressure came from a Supreme Court decision in South Korea, which ruled that Bitcoin held on centralized trading platforms can be legally seized ^[1].

Bullish Forecast Despite Short-Term Weakness

Despite the current consolidation, Tom Lee of Fundstrat remains optimistic about future price development. Lee predicts a possible doubling of Bitcoin's price by the end of January, driven by improved liquidity, increased institutional participation, and clearer regulatory frameworks ^[2]. According to Lee, the growing use of Bitcoin ETFs could also act as a catalyst, indicating a shift toward broader acceptance that goes beyond purely speculative activities ^[2].

Technical Perspective Shows Critical Support Zones

From a technical perspective, Bitcoin is trading well above its 50-day Simple Moving Average, suggesting a short-term bullish sentiment ^[2]. The Relative Strength Index is consolidating at 50.99, signaling a balance of power between buyers and sellers ^[2]. Key Fibonacci support levels are at $89,015 (0.382 level) and $87,340 (0.5 level) ^[2].

Should the 50-day SMA at $89,389 hold as strong support, Bitcoin could continue to rise in the long term, with target zones at $94,660 and $98,898 ^[2]. Bitcoin has maintained a stable trading range between $85,000 and $90,000 since early December 2024, after the cryptocurrency reached a high of $126,000 in early October ^[2].