Bitcoin Takes a Dive! What’s Up with These BTC Signals? 🤔💸

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Well, folks, gather ’round and lend me your ears, for it seems our dear friend Bitcoin [BTC] has taken a bit of a tumble, slipping under the hallowed $90k mark to a measly $89.3k on the 8th of January. But fear not, as I pen this little note, our crypto comrade is back up to a whopping $91k, though one can’t help but wonder if it’s just a case of the vapors following some rather shifty news about Morgan Stanley’s Bitcoin ETF.

Now, let me tell you, this dip has resulted in a staggering $440 million being liquidated quicker than you can say “bankruptcy,” with a hefty 70% of those losses coming from eager long positions. And wouldn’t you know it, the Coinbase Premium Index has been screaming about weak buying pressure from our friends over yonder in the U.S., while the general market sentiment appears to be as cautious as a cat in a room full of rocking chairs, despite some bullish gains in this fine month of January.

On-chain metrics show weak demand for Bitcoin

In a recent post on the good old X (formerly known as Twitter), our crypto whisperer Axel Adler Jr pointed out that the Bitcoin Unified Sentiment Index has made a rare turn from fear towards neutrality for the first time since November 2025. A sight to behold, indeed!

But don’t get your hopes up too high, as this change does little to inspire thoughts of a sustained rally or even a modest buying spree. Just look at how quickly our traders and short-term holders are willing to pocket their profits after that little jaunt to the $94.5k local resistance.

On a brighter note, there’s evidence sprouting up like weeds in spring that hints at growing buying power in the crypto garden. AMBCrypto has reported fresh stablecoin inflows to exchanges starting the year off right, albeit accompanied by those weakly positive capital flows – like a bad pun that still makes you chuckle.

Now, using the apparent Bitcoin demand metric to gauge liquidity, we can see what sort of market regime we’re wrangling with. Back in August and September 2025, as prices gallivanted up to $124k, the apparent demand was nosediving faster than a duck in a pond. This told us that demand was losing steam faster than a runaway train.

When apparent demand is positive and prices are rising, it normally means strong buying is gobbling up older coins entering the market. But when that absorption slows down, why, the bull run tends to lose its gusto and fade away like a ghost story by a crackling fire.

Come November, it seems our apparent demand dropped into negative territory. If this metric sits below zero for a month, it usually signals a period of deep consolidation or, heaven forbid, the beginning of a bear market – which could very well be the case now.

As we look at Bitcoin spot ETF flows, they’ve been mostly negative the past fortnight, painting a gloomy picture of weak demand for our leading crypto asset. Though January kicked off with two days of bullish inflows, the momentum fizzled out quicker than soda left open overnight. With key metrics continuing to signal a lack of interest from buyers, traders ought to keep their wits about them regarding potential further price declines.

Final Thoughts

  • The Bitcoin Unified Sentiment Index has made its first shift from fearful to neutral since November. Look out, folks!
  • January began with a bang, but alas, the rally beyond $94.5k hit a wall, and those negative ETF flows this week serve as a stark reminder of the lack of lasting demand.

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2026-01-09 16:36