Can Bitcoin Weather the Storm? A Tale of $90K and ETF Outflows!

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Bitcoin’s [BTC] mid-week correction from $94.7K to $90K shifted market sentiment from a “neutral” to a “fear” level again-how very dramatic of it. One might imagine the price behaving like a heroine in a novel, swooning at the first hint of adversity. 😂

The sentiment recovered along with the price from late December, followed by renewed ETF inflows in the first two days of 2026. However, the ETFs’ daily net flows turned negative on the 6th and 7th of January, resulting in a total of $729 million in outflows. A most unbecoming display, if you ask me. 🐾

But based on past sentiment levels, this was still a buy opportunity for Bitcoin. Especially if there is no major bearish catalyst or geopolitical event that flips it into ‘extreme fear.’ One might say the market is playing a game of Whac-A-Mole with its anxieties. 🤯

BTC falls with Asian stocks 

But there was another interesting link to the Asian stock market.

Since mid-December, BTC has recorded most of its daily gains during the Asian trading sessions, only to sell off during U.S. market hours. A most quaint habit, akin to a lady who thrives in the morning but falters by teatime. ☕

However, mid-week BTC’s retreat appeared to track the latest correction in the Asian stock market. 

The Nikkei and Nifty 50 both eased by over 1% on the 8th of January. BTC also slipped 1.4% and was barely holding the $90K support at press time. A most delicate balancing act, one might say. 🧗♀️

From a price chart perspective, BTC was still within the December price range of $80K-$94K. In the short-term, defending the 50-day Moving Average (MA, $89.2K) could trigger a rebound towards $94K-$96K again. One hopes the price has better stamina than a Georgian-era horse drawn carriage. 🐎

However, if the support is cracked, dropping to the range lows at $84K or $80K could be feasible. A most humbling prospect, though not entirely unexpected. 🐲

That said, the consolidation above $80K was healthy for a potential and constructive BTC rebound in 2026, from an on-chain perspective. A silver lining, perhaps, for those with the patience of Job. 🌈

Bitcoin price recovery likely only if…

According to Glassnode, the selling pressure and profit-taking seen in late 2025 had eased significantly. The daily average Realized Profit has dropped to $183 million from over $1 billion seen during most of Q4 2025. A most civilized reduction, one might say. 🎩

The on-chain analytics firm noted that the selling relief, especially from long-term holders (LTH) was a crucial setup for more upside momentum. A most strategic maneuver, worthy of a Regency-era ballroom dance. 💃

“The early-January breakout thus reflects a market that had effectively reset its profit-taking pressure, allowing the price to move higher.”

Meanwhile, the firm cautioned that further recovery could be confirmed if the short-term holder’s (STH) cost basis of $99.1K is reclaimed. Otherwise, if the STH isn’t back to profitability, they may panic sell and extend the bear market. A most dramatic plot twist, reminiscent of a Gothic novel. 📖

“Without a decisive and sustained return to profitability, the probability of further bear market continuation increases, making this a critical metric to monitor in the weeks ahead.”

Final Thoughts 

  • Bitcoin gave back January recovery gains but was still within the December price range of $80K-$94K
  • The current sideways structure was constructive for a mid-term BTC rebound amid easing selling pressure, but only if $99.1K if reclaimed.

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2026-01-09 03:11