Bitcoin Analysts Expect $105K Rally as Market Activity Gains Momentum After Holiday Lull

Bitcoin's current slump is expected to reverse as analysts eye a post-holiday rally above $105,000. Liquidity returning to markets and strong buyer signals are seen as key drivers, though resistance from ETF outflows could limit short-term gains.

Institutional Hesitancy Amid Holiday Slump

Although institutional investors are hesitant to purchase Bitcoin at the moment because of the holidays, experts predict that the cryptocurrency will soon regain its $100,000 level of support.

Cointelegraph data reveals that Bitcoin's price has been trading below the $100,000 psychological threshold since December 19. It is currently down 9.7% from its all-time high of nearly $108,300 recorded on December 17.

However, according to Bitget Research head analyst Ryan Lee, Bitcoin's price might fall and then rise above $105,000 when liquidity comes back after the holidays.

Post-Holiday Market Activity and Bitcoin's Prospects

According to the analyst, Bitcoin's present decline is a natural sign of the holiday season's lack of trading volume, as reported by Cointelegraph:

“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump's upcoming inauguration… The expected trading range for BTC this week is $94,000 - $105,000.”

Nearly a month before Donald Trump's inauguration on January 20, which is seen as a good development for U.S. cryptocurrency regulations and economic policies in the run-up to 2028, the analysts have made their prediction.

ETF Outflows and Bitcoin’s Price Limitations

Despite expectations that Bitcoin will regain its six-figure price tag, the decline in US spot Bitcoin ETFs has constrained its present price motion.

According to data compiled by Farside Investors, Bitcoin ETFs have lost money for four days in a row, with a total of more than $338 million in net outflows on December 24.

Funding Rates Highlight Buyer Strength

Bitcoin's 2024 rise has been propelled in large part by ETF inflows. By February 15th, Bitcoin's price had risen above $50,000, thanks to the 75% of fresh investment that came from US spot ETFs.

The funding rate of Bitcoin, which is used to align futures and spot market prices and ensure fair trade, is currently at 0.0100% on Binance, the biggest exchange in the world, according to data from CoinGlass. This is another optimistic indicator.

A buyer-dominated market is indicated by a positive funding rate, since buyers are paying sellers a fee to keep their positions.

In a report on December 24th, crypto analyst Rekt Capital said that technical chart patterns indicate Bitcoin's downturn could last longer than expected:

But for the next 12 months, experts predict Bitcoin will continue to rise in value. Crypto services provider Matrixport predicts that Bitcoin might reach $160,000 in 2025 if macroeconomic conditions improve.