🌎 Bitcoin Price Remains Stalled Near $97,600 Level

Bitcoin Price Consolidation Continues as Investor Sentiment Remains Neutral

Bitcoin price continued its consolidation as the fear and greed index remained at the neutral point and the Z score of the market value and realized value fell to a three-month low. The largest cryptocurrency by volume remained in a tight range, with its price hovering around $97,600 — up 1.2%.

Why Bitcoin Price Has Stalled

Investors remain on the sidelines as they wait for the next catalyst, leading to a waning demand for spot Bitcoin ETFs. SoSoValue data shows that American investors’ demand for spot Bitcoin ETFs has decreased, with net outflows worth over $650 million in the last four days.

On-chain analyst Ali Martinez commented on the trend, noting that spot Bitcoin ETFs have offloaded nearly 7,437 BTC in the past week. When spot Bitcoin ETFs offload BTC, it can create downward price pressure, signal investor outflows, and increase market volatility.

Factors Contributing to the Stalled Price

Several factors are contributing to the stalled price, including ongoing geopolitical risks and potential for high interest rates for longer. Investors anticipate President Donald Trump’s tariffs will spark a trade war and cause market volatility, leading to higher inflation as companies boost prices in the U.S.

Inflation data released this week showed that the headline consumer inflation data rose from 2.9% in December to 3% in January, while the core CPI moved from 3.2% to 3.3%. Bitcoin and other risky assets underperform the market when the Federal Reserve is hawkish.

Investor Sentiment and Technical Analysis

The closely watched fear and greed index has dropped from the extreme greed area of 90 in 2024 to the fear zone of 40. The Z score of the MVRV (Market Value to Realized Value) indicator has also dropped to 2.49, indicating that Bitcoin is undervalued.

Historically, a drop in the fear and greed index, MVRV, and futures open interest signals potential accumulation by smart money investors. The daily chart shows that the price of Bitcoin has remained below $100,000 in the past few days and has formed a double-top chart pattern at $108,440.

Bitcoin’s outlook is bearish as long as it is below the double-top level. The bearish outlook will become invalid if it moves above $108,440, as this will invalidate the double-top point. A drop below the neckline point at $89,055 will point to more downside, with the next support level being at $73,613.