Bitcoin price is likely to follow Gold in a bullish trend over the long term, especially after the US tariff wars cool down.
BTC price must rebound from the support level above $91K to invalidate potential selloff ahead.
Bitcoin price dropped over 2% in the past 24 hours, thus closing Tuesday at the lowest daily candlestick since January 15, 2025. The flagship coin dropped as much as $94.8K in the past 24 hours before slightly rebounding to trade about $96.2K on Wednesday, February 12, during the mid-London session.
Since the inauguration of for the second term, Bitcoin price has been trapped in a falling trend in the daily time frame. The resistance range between $108K and $109.3K has proved a hard nutshell to crack for the buyers, amid the proliferation of institutional investors.
Moreover, BTC price has formed a potential double top around $108K coupled with a bearish divergence of the weekly Relative Strength Index (RSI). However, Bitcoin price has established robust support above $91K, which was retested earlier this month. As a result, Bitcoin price is likely to retest the $91K support level again before potentially rebounding towards the all-time high (ATH).
In case the support level around $91K is breached, the flagship coin will continue to drop towards the support range between $75K and $85K.
Bitcoin Whales Remain Fearful
The short-term macroeconomic uncertainty heightened by the White House tariff wars against its trading partners has shaken the overall crypto bullish outlook. Despite the heightened demand for Gold in the past few weeks leading to the recent surge towards ATH, Bitcoin price has struggled to re-ignite the bullish sentiment experienced during the fourth quarter of 2024 and earlier this year.
As a result, the overall demand for Bitcoin by whale investors has remained relatively low. As Coinspeaker , the US spot BTC ETFs have registered low cash inflows in the past few days. In the past two days, the US spot BTC ETFs recorded a net cash outflow of over $242 million. On Tuesday, only BlackRock’s IBIT registered a net cash inflow of about $23 million. As a result, the US spot BTC ETFs recorded a net cash inflow of $56 million on Tuesday.
Meanwhile, the overall supply of BTC on centralized exchanges has surged from 2.13 million to 2.22 million in the past week.
What’s Next?
The rising discussions of altcoins and Bitcoin on different social media platforms have not reciprocated to bullish sentiment. As a result, crypto analyst Ali Martinez has noted that now is not the best time to purchase Bitcoin in preparation for a potential bullish rally in the near future.
“Bitcoin funding rates are currently positive, while historically, the best buying opportunities have come when they turn negative. Keep an eye on the next shift,” Martinez .
The imminent adoption of Bitcoin by nation-states will lead to the largest supply vs demand shock, hence fueling the macro bullish sentiment.