Steady inflows into Bitcoin (BTC) Spot ETFs, combined with dwindling sell-side liquidity, are shaping a potentially bullish outlook for the cryptocurrency market.
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Massive institutional capital is flowing into BTC Spot ETFs, but bulls must overcome the critical $104.9k resistance level to sustain momentum.
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With BTC OTC sell-side liquidity dwindling, several high-leverage liquidity levels are positioned below $101K.
Since mid-April, Bitcoin (BTC) Spot ETFs have experienced a stable influx of investments, vastly exceeding outflows. This renewed institutional interest has driven net inflows to nearly $1 billion, reflecting a healthy demand from ETFs that supports the price of Bitcoin in the market.
Source: CoinGlass
Despite the positive inflow metrics supporting a stronger price, historical data suggests potential price declines if the momentum begins to wane.
If the streak of ETF inflows continues, BTC could see further price increases. However, any reduction in investment activity may negatively impact these bullish trends.
Key Levels and Price Analysis
Current charts for Bitcoin illustrate notable price gains intertwined with periods of tight trading. Initially, the price consolidated in the $83K to $86K range, then moved to a tighter consolidation between $93K and $96K. Recently, it has entered another phase of consolidation between $101K and $105K.
Source: TradingView
Given this consolidation, traders should watch for any breakout outside the $101K to $105K range. A break above $105K could signal continued bullish momentum, while a move below $101K may indicate a bearish trend potentially targeting lower support levels.
This equilibrium suggests that the market’s direction could shift dramatically based on the next breakout.
BTC OTC and Perpetual Liquidity Levels
The analysis indicates a significant drop in Bitcoin’s liquidity across various platforms since reaching its peak. Data suggests that as sale announcements decrease, the liquid supply of Bitcoin is rapidly contracting.
Source: X
The reduced availability of Bitcoin in the market could potentially trigger a price surge, particularly if demand remains stable in 2025.
Additionally, a review of fresh liquidations within BTC perpetual contracts reveals various liquidation points, especially for low-leverage positions around the $101,000 level.
High-leverage long positions exist at $99,459 and $100,522, while short positions face liquidation points like $105,764 and $105,498, above the current price.
Source: TradingView
This suggests that a supply squeeze could be imminent, potentially leading to price elevation. However, a downturn approaching the major liquidation zones beneath $101,000 may trigger excessive selling activity, adding downward pressure to the price until a demand-induced rebound occurs.
Conclusion
In summary, as BTC experiences significant inflows and liquidity challenges, market participants should closely monitor key price levels. Maintaining momentum above $104.9K could pave the way for new price highs, but any retreat below critical support levels may lead to adverse price movements. Understanding these dynamics will be crucial for informed trading decisions in a rapidly changing market.
