Can Bitcoin Maintain Its $90,000 Level Amid $729 Million in ETF Outflows?

Bitcoin’s [BTC] recent dip from $94,700 to $90,000 has shifted market sentiment from “neutral” to a state of “fear.” After a promising recovery in late December, driven by renewed interest in exchange-traded funds (ETFs) in early January, the situation took a downturn as ETF inflows turned negative on January 6th and 7th, leading to $729 million in outflows.

Key Takeaways

Bitcoin’s price recently dropped from $94,700 to $90,000, leading to a shift in market sentiment to “fear."
ETF outflows reached $729 million, but some analysts view this as a buying opportunity.
Bitcoin's recent declines are correlated with movements in Asian stock markets.
Maintaining support above $90,000 is crucial; failure to do so could lead to additional drops.
A return to profitability for short-term holders is necessary for a sustainable price recovery.

Bitcoin price

Bitcoin

Source: CoinGlass

Despite this decline in sentiment, many investors still view this as a buying opportunity for Bitcoin, especially in the absence of significant negative catalysts or geopolitical incidents that might induce ‘extreme fear.’

Bitcoin's Decline Linked to Asian Markets

Interestingly, Bitcoin's recent performance has shown a correlation with the Asian stock market. Since mid-December, BTC has generally gained during Asian trading hours, only to see declines during U.S. market hours.

Bitcoin price

Source: Velo

However, this week’s slide in BTC seems to reflect corrections in Asian stock indices. On January 8th, both the Nikkei and Nifty 50 dropped by more than 1%, contributing to a 1.4% decline in BTC, which struggled to maintain support at the $90,000 level during the time of reporting.

Bitcoin

Source: BTC/USDT, TradingView

From a technical standpoint, BTC is still within its December price range of $80,000 to $94,000. Protecting the 50-day Moving Average (MA) at $89,200 could potentially ignite a rebound towards the $94,000 to $96,000 range. However, if this support level fails, a drop to the lower bounds at $84,000 or even $80,000 might be on the table. Overall, sustaining levels above $80,000 is seen as healthy for BTC’s potential recovery in 2026, from an on-chain analysis perspective.

Prospects for Bitcoin Price Recovery

According to Glassnode, selling pressure and profit-taking from late 2025 has significantly decreased, with the daily average Realized Profit falling to $183 million, down from over $1 billion during most of Q4 2025.

Bitcoin

Source: Glassnode

Glassnode's analysis indicates that this decline in selling, especially from long-term holders (LTH), sets the stage for potential upward momentum. "The early-January breakout reflects a market that has effectively reset its profit-taking pressure, allowing for potential price increases."

However, Glassnode also highlighted that further recovery hinges on reclaiming the short-term holders' (STH) cost basis of $99,100. If STC holders fail to return to profitability, they may panic and sell, prolonging the bear market. "Without a decisive return to profitability, there's an increased risk of extended bear market conditions, making this metric crucial to monitor in the forthcoming weeks."

Final Thoughts

As Bitcoin navigates this turbulent market, investors are advised to keep a close eye on the price levels in relation to the overall sentiment and external market influences.