Bitcoin Rebounds To $96,500, Defies $284M ETF Outflows: Here's What Experts See Happening Next

Bitcoin and Ethereum spot ETFs experienced significant net outflows on Jan. 13, signaling a potential shift in market sentiment.

What Happened: Bitcoin ETFs saw a combined net outflow of $284 million, while Ethereum ETFs recorded a total net outflow of $39.4 million, extending the outflow streak to four consecutive days for Ethereum products.

These outflows come as both assets have seen recent price corrections, prompting analysts to weigh in on the market's current trajectory.

Despite the overall outflow trend, BlackRock‘s IBIT and ETHA ETFs posted the largest individual net inflows, with $29.4 million and $12.8 million, respectively, according to data from SoSo Value.

However, these inflows were not enough to offset the broader market trend.

Bitcoin BTC/USD was trading up 6% around $96,500, on Tuesday morning European time, after making a low of $89,800 late Monday night.

Also Read: Tether To Relocate Headquarters To El Salvador

What Experts Are Saying: Thomas Lee, CIO at Fundstrat Capital, noted that the recent correction in Bitcoin's price, roughly 15% from its highs, is “a pretty normal correction for a hyper-volatile asset.”

“In the near term, again, our technician thinks 70,000 is where we can sort of make a stand… There’s retracement level… So 70 is one level, it could go as low as the 50s, but that’s again not a new level.” he added.

Lee maintains a bullish long-term view on Bitcoin, despite the short-term pullback, predicting it will be one of the best-performing assets.

In a note to Benzinga, Avinash Shekhar, Co-founder, and CEO of Pi42, described the current market as “a turbulent balance between the macroeconomic restraints and market optimism.”

He further said that while Bitcoin gained about 37% over 90 days, it is experiencing the headwinds of profit-booking, decreased institutional flows, and regulatory challenges.

However, Shekhar also pointed to an annualized futures premium of 11%, indicating “investor confidence for the next bull run,” while also suggesting short-term caution.

Technical analysis from Fairlead Strategies painted a bearish picture for both Bitcoin and Ethereum ETH/USD in the short-term.

Their analysis stated in a note to Benzinga that Bitcoin “recently made a lower high and has fallen back into the daily cloud in a setback, keeping its corrective phase intact.”

The analysts identified support near $87,500, with resistance near $100,000.

For Ethereum, Fairlead noted a “steepsell−off, resulting in a breakdown below initial support at the daily cloud ($3225), which is an intermediate-term bearish development.”

They see Ethereum testing its 200-day MA near $2980.

Despite these bearish short-term perspectives, Fairlead remains long-term bullish on both assets.

Alex Kuptsikevich, chief market analyst at FxPro told Benzinga that the drop late last week may well have been the bottom for the market.

“Despite the prolonged correction, this is still a bull market where it is preferable to look for buying dips rather than selling highs,” he said.

Among major altcoins, Solana SOL/USD, Dogecoin DOGE/USD, Cardano ADA/USD, Sui SUI/USD and Shiba Inu SHIB/USD are trading up 5%, 8.8%, 6%, 5.5% and 4.0%, respectively.

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