Bitcoin Analysis for January 2: What’s Next for BTC as Futures Outflows Impact the Market

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Summary: Bitcoin's recent performance shows a slight upward trend, but concerns about negative futures outflows suggest that short-term traders should proceed with caution. As BTC navigates through essential support and resistance levels, market sentiment remains mixed.

Key Takeaways:

Bitcoin (BTC) has experienced a 1.4% rise, currently trading around $88,761.
Over the past 14 days, BTC shows a modest gain of 1.6%, with significant caution for the long-term due to past declines.
Two crucial price levels to monitor: immediate support at $87,489.65 and resistance at $88,979.05.
Recent futures data highlights mixed sentiment, with significant outflows over longer periods, suggesting profit-taking behavior.

Current Bitcoin Price Movement

Bitcoin (BTC) is currently displaying a positive momentum, having gained 1.4% and trading around $88,761. Within the last 24 hours, BTC fluctuated from a low of $87,489.65 to a high of $88,979.05, at present positioned near its upper range.

When observing a broader scope, Bitcoin has recorded modest growth of 1.6% over the past two weeks. These results hint that the original cryptocurrency might be gearing up for a significant breakout. However, it's important to note the longer-term indicators showing a cautious market response, with declines over 30 days and 1 year at 5.2% and 7.0%, respectively.

Traders should keep an eye on two crucial price levels: the recent 24-hour low at $87,489.65, which serves as immediate support, and the daily high at $88,979.05 representing short-term resistance. Should buyers manage to push BTC beyond this range convincingly, a more robust bullish phase could follow.

Technical Analysis of Bitcoin

On the technical front, Bitcoin's 9-day Simple Moving Average (SMA) stands at $87,891, providing near-term support. The key resistance level that BTC needs to breach is the daily high of $89,011 for the potential to continue its upward trend. Trading activity remains stable, although momentum indicators show mixed signals as market participants consider their positions.

Bitcoin Analysis

The Moving Average Convergence Divergence (MACD) suggests a weakening of bearish momentum. A breakthrough above $89,011 could pave the way towards the $90,000 mark, whereas a drop below the SMA support could test levels around $87,000, leading to potential further declines.

Traders are advised to carefully monitor these pivotal price zones, as the short-term direction may heavily depend on BTC sustaining support or breaking through resistance in the upcoming sessions.

Insights on Bitcoin Liquidation Data

Recent data on Bitcoin futures indicates a mixed sentiment in the short term and some profit-taking tendencies over more extended periods. Within the last half an hour and hour, there were modest net inflows of $22.11 million and $3.37 million, respectively.

Bitcoin Futures Flows

However, net outflows have been prevalent from 4-hour to 3-day timeframes. Specifically, during the 4-hour period, net outflows totaled $174.32 million, with the 8-hour period seeing $258.14 million, and the 12-hour period recording $373.61 million. The 24-hour and 3-day periods also reflected significant net outflows amounting to $206.04 million and $279.76 million, respectively.

Disclaimer: This article is for informational purposes only and is not financial advice. The views expressed here are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers should conduct their research before making any investment decisions, as The Crypto Basic is not liable for any financial losses.