Bitcoin (BTC) Price Correction May Be Nearing an End as Key Metrics Signal Reduced Selling Pressure

Bitcoin's price, which peaked at an all-time high of $108,000 on December 17, 2024, has since corrected by over 10%. However, key metrics suggest reduced selling pressure, fueling hopes for a rally back above $100,000.

Bitcoin’s price, which peaked at an all-time high of $108,000 on December 17, has since corrected by over 10%. However, key metrics suggest reduced selling pressure, fueling hopes for a rally back above $100,000.

Bitcoin exchange inflows — the total BTC transferred to exchanges — have declined significantly since November 2024. Inflows peaked at 98,748 BTC on November 25, during heightened activity following the U.S. presidential election.

Afterwards, exchange inflows dropped substantially, ranging from 11,000 to 79,000 BTC daily throughout December.

This metric suggests that fewer traders are sending BTC to exchanges, which could indicate a reduced intent to sell.

Bitcoin miner outflows — BTC sent by miners to exchanges — have also dropped since November, when miners took profits during the Trump-related rally.

Bitcoin miner outflows peaked at 25,367 BTC on November 11, when BTC hit $88,000.

Afterwards, miner outflows dropped significantly, with recent outflows of 5,489 BTC (January 1), 5,748 BTC (January 2), and 2,133 BTC (January 3), signaling a lower selling pressure from miners.

Several analysts have highlighted the need for higher trading volume to break resistance and propel BTC upwards.

"The market structure remains bullish, but we lack sufficient trading volume for a strong impulse," noted market analyst Axel Adler on January 4.

Others, like market commentator Tedtalksmacro, also pointed to the importance of volume, stating: "If we get the volume, we can go parabolic quickly."

Exchange-traded fund (ETF) inflows rebounded sharply with $900 million on January 3, 2025, reversing several days of significant outflows.

This follows a period where ETFs saw outflows of up to $1.2 billion, the highest since December 2021.

The latest data suggests a shift in institutional sentiment, with renewed interest in crypto assets. This could serve as a potential catalyst for price recovery, given the role institutions play in the crypto market.

Bitfinex analysts predict BTC will trade within the $95,000–$110,000 range for January, with the possibility of breaching the $100,000 psychological resistance if volume increases.

"Bitcoin is likely to trade within the $95,000–$110,000 range in January. A breakout above $100,000 is possible if trading volume picks up and pushes BTC above this key level," the analysts noted in their January market overview.

"A failure to attract sufficient buying pressure could lead to a deeper retracement, testing support at $80,000 or lower."