The price of Bitcoin (BTC) remains just below $105,000 showing no indications of its next movement. While a breakout could spark bullish momentum and revive the excitement around this crypto bull run, it is also pertinent that market bulls resist further decline to certain price levels.

Bitcoin Must Hold Above $97,877 To Preserve Uptrend

Following a significant price correction in December 2024, Bitcoin appears to have regained its bullish form in 2025 surging to even establish a new all-time high of $109,114 as Donald Trump assumed office as US President. 

Currently, the flagship crypto asset trades below $105,000 following a series of significant gains and losses over the last week. Amidst this market uncertainty, popular crypto analyst Ali Martinez has highlighted a price support level vital to sustaining Bitcoin’s current bullish structure.

In an X post on January 25, Martinez states that investors accumulated over 101,000 BTC at $97,877, converting this price zone into a key support level. Therefore, Bitcoin price must hold above this level to ensure a continuation of the current uptrend.

Notably, the accumulation of a massive volume of BTC at $97,877 indicates strong market confidence among investors. Converting this high market price into a potential price floor for Bitcoin suggests expectations of a prolonged bullish phase and higher profit levels. 

Interestingly, certain technical indicators also support this bullish sentiment. Based on Bitcoin’s daily trading chart, its Relative Strength Index sits at 60.83 indicating the premier cryptocurrency still has much room for growth before entering the overbought zone and experiencing a price reversal. 

However, if BTC loses its support level at $97,877 due to overwhelming selling pressure, this price dip would signal a broader market retracement paving the way for a free fall to around $92,800 at which lies the next significant support zone.

BTC Investors Show Strong Demand With High CEX Outflows

In other news, blockchain analytics platform IntoTheBlock reports that centralized exchanges (CEX) have recorded $800 million in Bitcoin net outflows over the past week. 

This development suggests a high demand by BTC investors who are acquiring and moving BTC to private wallets in anticipation of future gains. Importantly, a declining supply of BTC on exchanges reduces the potential of any significant selling pressure that would negatively impact prices.

At press time, Bitcoin exchanges hands at $104,805 reflecting a minor 0.15% decline in the past day. Meanwhile, daily trading volume is down by 53.81% and valued at $25.5 billion. Despite these metrics, the Bitcoin community remains largely bullish according to poll data from CoinMarketCap. With a market cap of $2.07 trillion, the maiden cryptocurrency retains 57.7% dominance of the total digital asset market.

In the last week, Bitcoin (BTC) secured an all-time high above $109,000 as Billionaire Republican Donald Trump became the 46th US President. However, the premier crypto asset has since declined, with its current market price now below $105,000.  Interestingly, current data on Bitcoin holders’ profitability backs the bullish structure of the market indicating little potential for bearish sentiment.

Bitcoin Holders Reap Huge Profits: Long-Term Investors Up 70%

In the crypto market, an asset’s holders’ profitability based on their realized price i.e. average cost of acquisition,  is an important metric in predicting investors’ sentiments. In a Quicktake post on CryptoQuant, an analyst with the username Crazzyblockk has provided insight on Bitcoin holders’ profitability across three major tiers.

The analyst states that data from CryptoQuant reveals that BTC long-term holders i.e. investors of more than 6 months are presently experiencing an average profit of 70%. Meanwhile, short-term holders i.e. holding less than six months are seeing a moderate 14.5% profit, reflecting their ability to accurately navigate recent market conditions.

Finally, despite limited exposure, new investors i.e. holders of Bitcoin for less than 1 month are experiencing a small profit of 4.7%. Going by this data, no tier of BTC holders are currently facing significant losses reducing the possibility of a widescale market sell-off.

Importantly, while profitability percentages have shown a minor decline relative to previous weeks and months, the BTC market is unlikely to slip into a bearish phase as long as short-term holders and new market entrants continue to record substantial profits.

The relevance of these tiers of Bitcoin holders stems from ongoing distribution by Bitcoin long-term holders who are currently taking profit. For example, popular crypto analyst Ali Martinez reports that Bitcoin long-term holders shedded 75,000 BTC in the past week. 

These substantial amounts of Bitcoin offloaded by long-term holders are purchased by short-term holders and new investors, mopping the effect of any potential selling pressure on the market. Therefore, if these investors begin to incur losses, it could trigger a strong bearish pressure on BTC.

BTC Price Overview

At press time, Bitcoin trades at $104,737 reflecting a 0.09% gain in the last day. The maiden cryptocurrency is down by 0.46% on the weekly chart. However, a price gain of 8.71% during the last 30 days reflects the current bullish structure of the BTC market.

Following the inauguration of Donald Trump, expectations for BTC are likely to grow higher considering the new US President’s pro-crypto manifesto. Thus far, President Trump’s administration appears to be off to a promising start, marked by the SEC’s repeal of the controversial SAB 121 and an executive order exploring the establishment of a national digital asset stockpile.

The price of Bitcoin had a mixed performance in the past week, surging to a new all-time high at some point before stabilizing around the $105,000 mark. While price action might have been somewhat sluggish in the past week, there is growing positive sentiment around the premier cryptocurrency — something missing in the first two weeks of 2025.

This recent spurt of optimism has seen the world’s largest cryptocurrency by market capitalization continue to spread its wings in the global financial markets. Interestingly, the latest data shows that the correlation between the Bitcoin price and the United States stock market has reached a new high.

What Does Growing Correlation Mean For BTC And Investors?

In a Quicktake post on the CryptoQuant platform, an analyst with the pseudonym Darkfost revealed that the Bitcoin price has remained closely tied to the performance of the United States stock market. According to data from CryptoQuant, the correlation between the BTC price and the NASDAQ Index reached a new all-time high on Saturday, January 25.

For clarity, the NASDAQ Composite is a stock market index that tracks the value of almost all stocks listed on the Nasdaq stock exchange. Along with the S&P 500 and the Dow Jones Industrial Average, NASDAQ ranks as one of the most popular stock market indices in the United States.

Source: CryptoQuant

Darkfost highlighted that the Bitcoin price and the Nasdaq index exhibited a historically strong correlation in 2024, continuing this trend in the new year. Similarly, the price of BTC and the S&P 500 index have been closely tied in the past year, even though there have been brief periods of decoupling.

According to the Quicktake analyst, the rising correlation suggests that institutional players are now more open to BTC as an asset class, aligning its performance with the traditional market trends.

Darkfost added:

With Trump now in charge, expectations of eased regulations, such as the rescindment of SAB 121, could further strengthen Bitcoin’s position as a recognized asset class among institutional investors, potentially accelerating its adoption.

The relationship between the Bitcoin and US stock markets has always been interesting, as they provide diverse investment opportunities. However, a strong correlation between these two asset classes is deemed to narrow the diversification opportunities they often offer to investors.

Bitcoin Price At A Glance

As of this writing, the price of BTC stands at around $104,900, reflecting no significant price movement in the past 24 hours.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView