- Bitcoin ETF inflows have reached their highest levels since January 2025, with negative funding rates potentially setting the stage for a short squeeze.
- BTC price climbed to $94,700 on April 23, trading above key moving averages while exchange deposits dropped to levels last seen in December 2016.
- Analysts suggest Bitcoin may consolidate between $93,000-$95,000 before potentially pushing toward the $100,000 mark.
Bitcoin’s price surged to $94,700 on April 23, reaching its highest level since March 2. The cryptocurrency now faces psychological resistance at $95,000, with analysts suggesting it might need to test support levels before advancing further. Swissblock stated on X that "The $94K–$95K zone is clearly the resistance to beat," suggesting a potential pullback toward $90,000 before regaining momentum.
Multiple bullish indicators suggest Bitcoin may be positioned to break above $95,000 in the coming weeks. AlphaBTC, a popular Bitcoin analyst, predicted that the asset will likely consolidate in the $93,000-$95,000 range "before pushing higher to take liquidity above 100K."
Institutional demand has rebounded significantly, with spot Bitcoin ETFs seeing net inflows of $936 million and $917 million on April 22 and 23 respectively, according to SoSoValue data. These inflows represent the highest since January 2025 and exceed 500 times the daily average for 2025. Market analyst Jamie Coutts noted that global liquidity has reached new all-time highs, a condition that historically fuels asset price rallies.
Supply Dynamics Support Bullish Outlook
The decreasing flow of Bitcoin to exchanges suggests reduced selling pressure. According to data from CryptoQuant, daily exchange inflows have dropped from a year-to-date high of 97,940 BTC on February 25 to just 45,000 BTC on April 23.
CryptoQuant analyst Axel Adler Jr. highlighted that the number of addresses depositing Bitcoin to exchanges has been "steadily declining since 2022," with the 30-day moving average dropping to 52,000 BTC, a level last seen in December 2016. "This trend is bullish in itself," he noted, adding that it "represents growing HODL sentiment, which significantly reduces selling pressure, creating a foundation for further growth."
Technical Factors Point To Potential Rally
Despite Bitcoin’s 11% price increase between April 22 and 23, perpetual futures funding rates remained negative during this period, according to Glassnode data. This unusual divergence indicates bearish sentiment in futures markets that could fuel a short squeeze as prices continue rising.
CryptoQuant contributor Darkfost observed that similar instances of negative funding rates during price increases historically preceded significant rallies, such as Bitcoin’s surge from $28,000 to $73,000 in October 2023 and from $57,000 to $108,000 in September 2024.
Technically, Bitcoin’s price has risen above the 200-day simple moving average (SMA), currently at $88,690. The last time Bitcoin broke above this key indicator, it rallied 80% from $66,000 in October 2024 to its previous all-time high of $108,000 in December. Should this support level hold, Bitcoin faces resistance at $95,000 and $100,000 before potentially challenging its January all-time high above $109,000.
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