Bitcoin Maintains Death Cross Pattern Amid Fragile Institutional Demand and Mixed Technical Indicators

• Bitcoin continues to trade below its 50-day and 200-day exponential moving averages, forming a bearish death cross pattern according to Yahoo Finance.
• Institutional demand appears uncertain, with Bitcoin ETFs recording $1.2 billion in early 2026 inflows, but $719 million in outflows shortly after as reported by AInvest.
• The broader crypto market is cooling, with a total market cap of $3.06 trillion and 80% of top 100 coins underperforming according to Bitget.

Bitcoin is currently trading near $90,600, struggling to break the $94,000 resistance level. This price action reflects a market in limbo, with no clear direction emerging from technical indicators.

The average directional index (ADX) stands at 24.2, indicating weak trend strength. Meanwhile, the relative strength index (RSI) is at 52.4, placing Bitcoin in neutral territory.

Support is currently holding at $88,000–$90,000, and resistance is at $94,000–$97,000. A sustained move above $94,000 could trigger a reentry of institutional capital.

What is the significance of ETF inflows and outflows in Bitcoin's price movement?

The price of Bitcoin is increasingly driven by institutional flows into and out of ETFs. These flows act as a bridge between traditional finance and the crypto market.

A fundamental transformation in Bitcoin's market structure is now undeniable. ETFs have become the primary driver of BTC price movements, moving away from retail-driven on-chain activity.

Jim Ferraioli, Director of Cryptocurrency Research at Charles Schwab, noted a consistent decline in on-chain activity since Bitcoin's peak in October 2024.

What do technical indicators and market sentiment suggest about Bitcoin's future price action?

Bitcoin remains in a death cross pattern, with the 50-day EMA below the 200-day EMA, suggesting further downward pressure.

Technical indicators like ADX and RSI suggest a market in limbo with no clear direction.

Prediction markets remain cautiously optimistic, with only a 4.9% chance of a 2026 crypto winter. Analysts like Tom Lee expect a potential H2 2026 rally if Bitcoin reclaims $94,000 with conviction.

Bitcoin's price stability depends on key support levels at $89,000 and $92,000. A clean retest of $90,000 is considered crucial for stabilizing the price and shaking out overexposed long positions.

What is the current sentiment among major financial institutions toward the crypto market?

JPMorgan is optimistic as crypto ETF outflows appear to be easing in January 2026, following significant outflows in December 2025.

The bank noted that global equity ETFs recorded record inflows of $235 billion. Analysts suggest this may indicate the crypto sell-off is nearing a bottom.

The approval of spot Bitcoin ETFs and the expansion of options and position limits have transformed how institutional investors access Bitcoin, treating it as a regulated financial asset.

Bitcoin ETFs have created a fundamental price floor, with tighter market spreads under 0.05%. Institutional investors are increasingly favoring Bitcoin over high-beta altcoins.

The latest data suggests a bottoming phase for the crypto market, with a reduced likelihood of further sell-offs.

Bitcoin is testing key resistance levels around $92,000–$94,000, with $4.7 billion in sell-side liquidity entering centralized venues, indicating potential distribution risk and increased short-term volatility.

The convergence of heavy inflows with Bitcoin testing the $92,000–$94,000 range skews risk to the downside in the short term.

Unless buyers can absorb this supply and secure a strong daily close above $94,000, the probability of a pullback toward the $85,000 Point of Control remains elevated.

Bitcoin has traded in a volatile but broadly range-bound fashion as investors digest shifting macroeconomic signals, uneven institutional flows and signs that the market is transitioning from a sharp correction into a consolidation phase.

The period began with a pronounced sell-off in late November, when Bitcoin fell more than 30% from its October record high near $126,000.00 towards the $80,000.00 region.

Following that correction, Bitcoin stabilized and spent much of December oscillating between roughly $85,000.00 and $94,000.00.

This sideways price action has coincided with renewed, though inconsistent, activity in spot Bitcoin exchange-traded funds (ETFs).

Data published over the past two to three weeks show that after a period of sustained outflows, some of the largest U.S.-listed spot Bitcoin ETFs recorded their strongest net inflows in weeks, signaling a partial return of institutional demand.