Bitcoin has started 2025 on the front foot with the world’s largest cryptocurrency by market capitalization breached the 100k barrier once more.
MicroStrategy has purchased more Bitcoin, marking its ninth buy in nine weeks. The company now owns 447,470 BTC, which it bought for $27.97 billion.
This coupled with the inauguration of Donald Trump on January 20 likely played a role in Bitcoin to push beyond the 100k barrier. There is growing optimism of a positive period for cryptocurrency under the leadership of Donald Trump who himself has floated the idea of a bitcoin fund for the US.
Source: TradingView (click to enlarge)
BTC Exchange Supply and Whales Continue to ‘HODL’
Given that the sentiment toward Bitcoin is extremely positive ahead of the Trump inauguration, I thought we could look at some exchange data. Analysts usually view withdrawals from exchanges as a sign that whales are looking to hold onto them long term.
Such a move also lessens the available Bitcoin for sale and could thus push prices higher. Look at the chart below which covers around 19 exchanges and you can see that as exchange balances decrease the price of Bitcoin increases.
Source: Coinglass (click to enlarge)
Bitcoin whales are buying more of the cryptocurrency. Whale Alert data shows one investor moved 1,696 BTC from one unknown wallet to another, a sign of accumulation.
Another whale transferred 1,194 BTC from Coinbase (NASDAQ:COIN) to an unknown wallet. These moves may further bolster the bullish narrative around Bitcoin and cryptocurrency as a whole moving forward.
ETF Flows Return
Institutional interest in Bitcoin dropped during the month of December. Data from Farside Investors on Spot Bitcoin ETF flows showed several days of outflows before interest picked up again in early January.
A sign that the demand for Bitcoin ETFs has returned came on Friday. Bitcoin recorded $908.1 million in net inflows across its US-based Spot ETFs, the largest inflow volume recorded since mid-December 2024.
Source: Farside Investors (click to enlarge)
Elon Musk to Introduce Crypto Payments on X Platform
Elon Musk’s X might be ready to launch a major breakthrough for bitcoin and cryptocurrency very soon. Since Elon Musk bought Twitter and renamed it X, he has been getting licenses to transfer money in different states as part of his goal to turn X into an “everything app” like China’s WeChat.
This week, X CEO Linda Yaccarino announced that payments will be introduced on the platform in 2025 through something called X Money, along with many other new features. She told people to “buckle up.”
The announcement of X Money has led to speculation that the platform might use or support bitcoin, cryptocurrency, or stablecoins tied to the dollar.
Such a move would no doubt only serve to enhance the appeal of the world’s largest cryptocurrency and could propel Bitcoin and altcoins to fresh highs.
Technical Analysis BTC/USD
Bitcoin (BTC/USD) bulls have found their feet over the past 7 days.
The worlds largest cryptocurrency is on a 7 day bull run from lows around 91315 on December 30. Bitcoin is up around 3.7% for the day at the time of writing.
As things stand a daily candle close above the 100000 mark is needed if Bitcoin is to confirm a change in structure. This could embolden bulls and provide further strength to Bitcoin, potentially propelling it toward its all time highs around the 108364 handle.
Immediate resistance may be found at 103647 and the psychological 105000 handle respectively.
A rejection of these resistance levels could see Bitcoin retest the 100000 mark before the 50-day MA comes into focus at 97494. A break of this level will bring attention to support at the 95000 handle.
Bitcoin (BTC/USD) Daily Chart, January 6, 2025
Source: TradingView.com (click to enlarge)
Support
- 100000
- 97494
- 95000
Resistance
- 103647
- 105000
- 108364