Coinbase Premium Index rebounds, pushes Bitcoin to $98K – Recovery odds?

• Coinbase Premium Index rebounded, indicating higher U.S demand for BTC
• Nevertheless, there gave the impression to be huge decrease liquidity that might constrict BTC in a worth vary

On Friday, 03 January, Bitcoin [BTC] soared to almost $99k following a rebound in U.S demand, as evidenced by the Coinbase Premium Index. In actual fact, the index not too long ago dropped to a 12-month low following a risk-off strategy by U.S retail and institutional traders in the course of the vacation season. 

The index additionally not too long ago reclaimed the important thing 14-day Easy Shifting Common (SMA) for the primary time in practically a month. In line with CryptoQuant analyst Burak Kesmeci, this highlighted higher dominance of U.S patrons out there. 

“When Coinbase Premium Index surges above SMA14, signaling Bitcoin purchaser dominance, this occasion is an early indicator that U.S.-based patrons are regaining dominance out there.”

Supply: CryptoQuant

Bitcoin ETFs log $908M every day inflows

The development was additionally evident throughout the U.S BTC ETFs advanced. They raked in $908M in every day internet inflows on Friday, marking a month-to-month excessive.

In actual fact, even BlackRock’s IBIT, which started the 12 months with outflows, noticed $253M in inflows on Friday. 

Supply: Soso Worth

Constancy’s FBTC led the demand with $357M and Ark Make investments’s ARKB got here in third with $222M inflows. Collectively, this indicated that institutional demand was again and aided BTC’s regular push to $98.9k. 

Apart from, the prolonged restoration was pushed by a liquidity hunt as an enormous pile of quick positions was situated on the $98k-level earlier within the week. Now, the upside liquidity is situated between $99k and $100k. 

Equally, decrease liquidity ranges (shiny yellow zones) gave the impression to be situated at $97.2k, $96k, and $95k. 

Supply: Coinglass

On condition that extra liquidity gave the impression to be targeting the decrease facet of the value motion at press time, a drop in the direction of $97K-$95K can’t be overruled. 

Learn Bitcoin [BTC] Value Prediction 2025-2026

Put in a different way, the liquidation heatmap advised that BTC might enter a worth vary between $96k and $100k within the quick time period.

Nevertheless, it stays to be seen whether or not robust BTC ETF demand will set off a bullish breakout above $100k.