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Bitcoin (BTC) has seen bearish but volatile price action in early 2025, with recent data highlighting volatile sentiment among US investors. After briefly breaching the $102,000 mark yesterday, the stock struggled to continue its gains, giving up most of its recent gains below $100,000.
These events are accompanied by important insights from key on-chain metrics that provide a clear view of Bitcoin’s short-term trajectory.
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Bitcoin Price Struggles Despite Positive Coinbase Premium Index Signal
CryptoQuant analyst known as Burak Kesmeci recently shared details about the Coinbase Premium Index (CPI), which turned positive for the first time in 2025. The CPI measures the price difference between Bitcoin on Coinbase and other global exchanges, which serves as an important indicator US investor sentiment.
In the past 3 days, the Coinbase Premium Index has crossed the SMA14 for the first time in 26 days—Bitcoin is up 4% to $102K.
In November 2024, the same move saw Bitcoin rally from $69K to $108K.
American consumers may return to work. pic.twitter.com/XtAlHUzzvv
– CryptoQuant.com (@cryptoquant_com) January 6, 2025
Alongside this positive change, a significant outflow of 4,012 BTC from Coinbase was recorded, indicating renewed buying interest among US investors. Historically, such patterns are associated with increased buying pressure, often setting the stage for potential price increases.
Despite these positive signs, Bitcoin’s price performance remains constrained. After briefly surpassing $102,000 on December 6, Bitcoin retreated and is now trading below $100,000, marking a modest 3.3% decline over the past 24 hours.
This price signal from the largest cryptocurrency by market capitalization puts it about 8.9% below its all-time high of $108,135, reached in December 2024.
Bitcoin Faces Key Resistance Levels
Notably, the current price action from BTC suggests that while the buying pressure is there, it may not be enough to start another strong rally.
According to cryptocurrency analyst Ali, Bitcoin maintains an important support zone between $95,400 and $98,400, where more than 1.77 million addresses collectively hold 1.53 million BTC.
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This support area remains important in stabilizing Bitcoin’s price amid market uncertainty. Conversely, resistance appears to be limited, with BTC offering only 107,000 placed between $104,700 and $105,770. This thin resistance could pave the way to the upside if buying pressure intensifies.
#Bitcoin sits above the key support area between $95,400 and $98,400, where 1.77 million addresses bought more than 1.53 million $BTC. However, no significant resistance is coming, only a small supply wall of 107,000 #BTC between $104,700 and $105,770. pic.twitter.com/MEATFegTV2
– Ali (@ali_charts) January 7, 2025
Meanwhile, in hindsight, analysts remain bearish on Bitcoin. Captain Faibik for example recently shared his opinion on BTC suggesting that the asset is still poised for a rally towards $112,000.
The featured image was created with DALL-E, a Chart from TradingView