Bitcoin (BTC) has experienced bullish yet unsteady price action at the start of 2025, evidenced by recent data that indicate shifting sentiment among US investors. Following a brief ascent above the $102,000 mark yesterday, Bitcoin has faced challenges in maintaining its upward trajectory, now hovering just below the $100,000 threshold.
These developments align with critical insights derived from on-chain metrics, which provide a clearer perspective on Bitcoin’s short-term path.
Bitcoin’s Price Struggles Despite Positive Coinbase Premium Index Signal
A recent analysis by CryptoQuant analyst Burak Kesmeci shed light on the Coinbase Premium Index (CPI), which has turned positive for the first time in 2025. The CPI measures the price difference between Bitcoin on Coinbase and other global exchanges, serving as a significant barometer of US investor sentiment.
3 days ago, Coinbase Premium Index crossed SMA14 for the 1st time in 26 days—Bitcoin is now up 4% to $102K.
In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K.
U.S. buyers could be back in action. pic.twitter.com/XtAlHUzzvv— CryptoQuant.com (@cryptoquant_com) January 6, 2025
In tandem with this positive shift, a notable 4,012 BTC outflow from Coinbase was recorded, indicating a resurgence of buying interest among US-based investors. Historically, such patterns have correlated with increased buying pressure, often laying the groundwork for potential price surges.
Despite these encouraging signals, Bitcoin’s price performance remains constrained. After temporarily exceeding $102,000 on January 6, Bitcoin retreated to trade below $100,000, reflecting a modest 3.3% decrease in the past 24 hours. This price level positions Bitcoin approximately 8.9% below its all-time high of $108,135, attained in December 2024.
Bitcoin Faces Key Resistance Levels
The current price action of BTC suggests that while buying pressure is evident, it may not yet be sufficient to instigate another strong rally. According to cryptocurrency analyst Ali, Bitcoin is maintaining a critical support zone between $95,400 and $98,400, where over 1.77 million addresses collectively hold 1.53 million BTC.
This support zone is vital for stabilizing Bitcoin’s price amid ongoing market uncertainties. On the flip side, resistance appears limited, with only 107,000 BTC supply positioned between $104,700 and $105,770. This relatively thin resistance could potentially facilitate upward movement if buying pressure increases.
#Bitcoin sits well above an important support zone between $95,400 and $98,400, where 1.77 million addresses bought over 1.53 million $BTC. However, there isn’t significant resistance ahead, only a minimal supply wall of 107,000 #BTC between $104,700 and $105,770. pic.twitter.com/MEATFegTV2
— Ali (@ali_charts) January 7, 2025
Looking further out, analysts maintain a generally bullish outlook for Bitcoin. Analyst Captain Faibik recently shared a forecast suggesting that the asset could still be primed for a rally to $112,000.
In summary, while current indicators present a mixed picture, the underlying fundamentals suggest that Bitcoin remains an asset to watch closely as it navigates both support and resistance in early 2025.
Featured image created with DALL-E, Chart from TradingView
