Bitcoin is currently trading at approximately $98,500, attempting to reclaim the $100,000 mark while remaining above $96,000 following a recent market selloff.

A significant capitulation event occurred on February 4 and 5, 2025, impacting altcoins and causing Bitcoin to drop over 9%, although it managed to recover more than 11% on the same day.

Traders are closely watching whether Bitcoin can break above the $100,000 resistance level, as failure to do so may lead to a deeper correction.

Conversely, a successful break and hold above $100,000 could ignite renewed bullish momentum, potentially testing the all-time high of $109,000.

If Bitcoin falls below $96,000, it may trigger additional selling pressure, bringing it closer to support levels around $92,000 to $94,000.

As of February 5, 2025, Bitcoin's balance on exchanges has decreased by 13% over the past six months, marking a six-year low.

On February 5, over 17,000 BTC were withdrawn from exchanges, with 15,000 BTC coming from Coinbase, indicating a trend toward self-custody among investors.

Bitcoin investment funds reported $486 million in net inflows for the week ending January 31, 2025, reflecting ongoing interest from institutional investors.

Spot Bitcoin ETFs in the US have seen substantial inflows, totaling approximately $2.5 billion in the last two weeks, highlighting strong institutional demand.

Key metrics suggest that Bitcoin remains in a bullish phase, supported by strong institutional interest as indicated by the Bitcoin Coinbase Flow Pulse analysis.

Market analysts note that large investors, or 'whales', are actively buying during price dips, which could signal a bullish market setup.

Crypto influencer Lark Davis remarked that a weakening dollar is favorable for risk assets like Bitcoin, potentially indicating a new phase in the crypto bull market.