Bitcoin pulls back from near $98,000 as spot demand wanes

Bitcoin stalled near $98,000 as spot demand showed signs of exhaustion, retracing for two sessions after a local high near $98,000 and slipping below $95,000 by the Friday New York session. The pullback coincided with a rollover in the Coinbase Bitcoin premium index, which briefly flipped positive near the highs but failed to sustain a breakout, suggesting limited follow-through from late spot buyers.

Cumulative volume delta made higher highs while price formed a higher low, a divergence that indicated aggressive buying absorbing sell pressure without enough strength to push prices higher. Meanwhile the bid–ask ratio remained negative during the rally, implying sell orders continued to outnumber bids.

After a short, sharp liquidation, open interest fell alongside price, indicating leverage was flushed out and new long positions were not eager to step in. Market analysis firm Material Indicators said bears "fought back hard," with trend signals flipping on the daily chart, and warned that losing key trendlines could lead to a deeper support test; it added that a reclaim above $97,000 would invalidate the latest bearish signals.

The dip also followed profit-taking by short-term holders: on Jan. 6 STHs sent over 30,000 BTC in profits to exchanges, and more than 40,000 BTC were realized in a single day as the price broke above $97,000.

Key Topics

Crypto, Bitcoin, Coinbase, Coinbase Premium Index, Cumulative Volume Delta, Short-term Holders