Bitcoin News Today: Bitcoin Rises on ETF Inflows, Bulls Test $92,500 Hurdle

Bitcoin's recent price action has traders on edge as the cryptocurrency surges from $87,744 to just over $92,000. The sharp rebound is sparking renewed interest among short-term traders, though longer-term bears remain cautious. Technical indicators show mixed signals, with momentum rising on shorter timeframes but the daily chart still trending bearish.

Institutional and whale activity has added a layer of complexity to the price narrative. Santiment reported that large holders accumulated 47,584 BTC in December after months of heavy selling, hinting at possible strategic positioning. Meanwhile, ETF inflows resumed, with nearly $55 million flowing into Bitcoin spot ETFs on Friday according to market reports.

Market analysts are closely watching key resistance and support levels. A breakout above $92,500 could signal continued strength toward $94,000 and beyond, while a dip below $87,000 would likely reignite bearish sentiment. Technical analysis shows the 1-hour and 4-hour charts show buyers stepping in on dips, but the broader trend remains capped.

Why the Standoff Happened

Bitcoin's recent volatility reflects a tug-of-war between short-term optimism and long-term caution. On the 1-hour and 4-hour charts, the price has shown a pattern of higher lows and orderly retracements, suggesting buyers are actively defending key support levels. These levels, particularly around $90,500–$91,000, have become critical battlegrounds for traders.

Despite this, the daily chart tells a different story. Bitcoin remains below the $94,000–$95,000 resistance zone, a level that has repeatedly stalled previous rallies. The inability to break through this ceiling has kept the broader trend bearish, with many analysts waiting for a definitive signal before shifting their stance.

Risks to the Outlook

The technical indicators are split, adding uncertainty to the market outlook. The relative strength index (RSI), Stochastic oscillator, commodity channel index (CCI), and average directional index (ADX) all remain neutral, while the moving average convergence divergence (MACD) and momentum indicators show signs of bullish momentum. This divergence has traders on edge, as it suggests the market is still weighing its next move.

Moving averages also offer conflicting signals. Short-term averages like the 10-day and 20-day exponential and simple moving averages (EMA and SMA) support the current upward movement, but longer-term averages—particularly the 30-day and above—suggest continued bearish pressure. This mix of signals makes it challenging for traders to form a cohesive strategy.

Whale activity has also introduced an element of unpredictability. After a prolonged period of selling from October 12 to November 30, large holders resumed accumulation in December. This shift could indicate that major players are preparing for a potential breakout, but it remains to be seen whether retail traders and market sentiment will follow suit.

What This Means for Investors

For now, the market remains in a tight range, with both bulls and bears testing each other's resolve. A strong close above $92,500 would bolster the case for a continuation of the uptrend, with the next key target at $94,000. If this level holds, investors might see renewed interest in pushing toward $96,000 and even $100,000.

On the flip side, any rejection from $92,500 could send prices back toward $87,000 or lower. A daily close below $87,000 would be particularly damaging, as it would confirm a breakdown in the current structure and increase the likelihood of a deeper correction. Given the high volatility and mixed technical signals, investors are advised to keep tight stop-loss levels and remain cautious about overexposure.

The broader macroeconomic backdrop also plays a role. With the Federal Reserve's monetary policy decision approaching, traders are watching for any shifts that could influence risk appetite. A rate cut, which is now priced at 93% on Polymarket could provide a tailwind for risk assets, including Bitcoin. However, any unexpected tightening could quickly reverse the current momentum.