Bitcoin returns to $90,000 but BTC ETF experiences significant outflows, market bulls and bears intensify their battle

January 22 News, Bitcoin has regained the $90,000 level after intense volatility, sparking high market attention on the next phase of its trend. Over the past week, BTC briefly fell below $90,000, then quickly rebounded due to short-term capital inflows and news-driven stimuli, exhibiting typical high volatility characteristics. This rapid surge is more attributable to position adjustments and emotional recovery rather than systematic long-term capital reflows.

On-chain data indicates that currently realized losses are mainly concentrated among investors holding for 3 to 6 months and 6 to 12 months, most of whom entered near the previous high of around $110,000. As the price retraces to the cost range, this group tends to reduce their positions during the rebound, creating phased selling pressure. Historically, such sell-offs often occur at the end of corrections; once completed, prices tend to stabilize more easily.

Meanwhile, short-term momentum has shown signs of recovery. In the past 48 hours, the Money Flow Index (MFI) has risen significantly, indicating renewed buying interest in the market. This indicator also reflects changes in price and trading volume, often used to gauge genuine demand. Recent easing of geopolitical tensions has also somewhat boosted risk appetite, supporting BTC. However, these news-driven buyings are relatively fragile; if macro conditions shift toward risk aversion, market sentiment could reverse again.

It is worth noting that spot Bitcoin ETFs have not warmed up simultaneously. Over the past three trading days, there has been a total outflow of about $1.6 billion, with approximately $708 million redeemed on Wednesday alone, reaching a new single-day high since November 2025. This divergence between the price rebound and continued institutional fund outflows suggests that large-scale capital is still waiting for clearer macro and liquidity signals.

On the technical side, Bitcoin remains within an ascending wedge pattern formed since mid-November 2025, with volatility ranges continuing to expand. The current price hovers above $90,000; if it can hold above $91,298, there may be a short-term challenge to $93,471. Conversely, if ETF outflows continue to suppress the market, the price could fall back to around $87,210 to retest support.

Until capital flows truly turn positive, Bitcoin will continue to operate within a high-volatility range, and the battle between bulls and bears is not yet over.