The value of Bitcoin (BTC) stays slightly under $105,000 with no signs of its upcoming direction. While a breakout could generate bullish momentum and rekindle the enthusiasm surrounding this crypto bull run, it is also crucial that market bulls maintain resistance against further drops to specific price points.
Bitcoin Needs to Maintain Above $97,877 to Uphold Uptrend
After a considerable price correction in December 2024, Bitcoin seems to have regained its optimistic form in 2025, skyrocketing to even achieve a new all-time peak of $109,114 as Donald Trump took office as US President.
At present, the leading crypto asset trades beneath $105,000 after a series of notable gains and losses during the previous week. Amid this market ambiguity, renowned crypto analyst Ali Martinez has pointed out a crucial price support level essential for preserving Bitcoin’s present bullish structure.
In a post on X dated January 25, Martinez mentions that investors gathered over 101,000 BTC at $97,877, transforming this price area into an essential support level. Consequently, Bitcoin’s price must remain above this threshold to guarantee the continuation of the ongoing uptrend.
Remarkably, the accumulation of a significant volume of BTC at $97,877 signals strong market confidence among traders. Transforming this high market price into a potential price floor for Bitcoin indicates expectations of an extended bullish phase and enhanced profit levels.
Interestingly, several technical indicators also back this bullish outlook. According to Bitcoin’s daily trading chart, its Relative Strength Index stands at 60.83 suggesting that the leading cryptocurrency still has ample room for enhancement before entering the overbought territory and facing a price reversal.
Nevertheless, if BTC drops below its support level at $97,877 due to overwhelming sell-off pressure, this price decline would indicate a broader market retracement, clearing the path for a plunge to roughly $92,800 where the next major support zone exists.
BTC Investors Display Strong Demand with Elevated CEX Outflows
In other developments, blockchain analytics platform IntoTheBlock reports that centralized exchanges (CEX) have recorded $800 million in Bitcoin net outflows over the last week.
This trend suggests a robust demand from BTC investors who are acquiring and transferring BTC to private wallets in anticipation of future profits. Crucially, a decreasing supply of BTC on exchanges diminishes the likelihood of any significant selling pressure that could adversely affect prices.
At the time of publication, Bitcoin trades at $104,805 reflecting a slight 0.15% decrease within the past day. Meanwhile, daily trading volume has dropped by 53.81% and is valued at $25.5 billion. Despite these figures, the Bitcoin community largely remains optimistic according to poll data from CoinMarketCap. With a market capitalization of $2.07 trillion, the original cryptocurrency holds 57.7% dominance over the total digital asset market.
Featured image from FinanceFeeds, chart from Tradingview
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