BTC Price Analysis: Is New All-Time High in Bitcoin Over Horizon?

Despite the strong recovery in Bitcoin last night to overcome the massive selling, the bulls struggled to hold the momentum to continue the recovery rally. After creating a 24-hour high at $102,569, the BTC price took a quick reversal.

With an intraday pullback of 2.74%, Bitcoin currently trades at a market price of $98,682. With a new bearish candle in the daily chart, Bitcoin is now hinting at a prolonged downtrend. 

Will this downfall in Bitcoin result in a breakdown of the local trend line to crash under the $90,000 mark? Let’s find out.

Bitcoin Analysis Reveals Hold-Off Above 50 EMA

In the daily chart, the massive lower price ejection in the recent bullish candle seems pretty evident. However, the bullish recovery is mostly undermined with the intraday bearish piercing candle.

This breaks under the 50-day EMA line as Bitcoin loses its support at the $100,000 psychological mark. However, the stochastic RSI lines give a positive crossover in the oversold territory, hinting at a potential recovery.

Furthermore, the bullish engulfing candle on February 3 highlighted a strong support for Bitcoin near $97,700. Hence, as long as Bitcoin sustains a closing price above $97,000, the uptrend is likely to continue.

Signs of Bullish Sentiment in Bitcoin Derivatives

Amid the increasing volatility in the BTC price trend, the derivatives market witnessed a minor recovery. The funding rate in Bitcoin has returned to positive levels after momentarily dipping at -0.0032%.

Currently, the funding rate remains at 0.0054%, reflecting a surge in bullish sentiments. Furthermore, the long-to-short ratio over the past 24 hours has resurfaced to nearly normal levels at 0.9928.This reveals almost equal parts of bearish and bullish positions at play. Meanwhile, the open interest remains at $60.21 billion, marking a slip of -2% over the past 24 hours.

Hence, despite the pullback in the open interest, the overall outlook in the derivatives market remains highly optimistic, as the bulls are willing to pay the premium to hold their long positions.

Bitcoin Institutional Activity: ETF Outflows Raise Concerns

The solid optimism in the derivatives market comes despite the significant outflow in the US spot Bitcoin ETFs. The institutions on February 3 recorded an overall net outflow of $234.54 million.

Among the top sellers, Fidelity sold $177.64 million, while ARK and 21Shares bled $50.75 million. The sole purchase of Bitcoin remains with Grayscale, with an inflow of $8.02 million.

However, its cumulative inflow still remains at a negative $21.88 billion.

Bitcoin Price Targets

Amid rising speculations, the short-term target in Bitcoin is likely to reach the overhead ceiling at $104,555. However, a declining trend in Bitcoin ETFs will prolong the downfall in BTC prices. 

Hence, on the flip side, a crucial support under $97,500 remains the support trend line near $94,600.