Bitcoin Falls as Stocks Rally, But Altcoins Show Surprising Strength

Market Performance - Bitcoin (BTC) dropped 2.57% over the last week, failing to join the risk-on rally that saw major stock indices rise, while the Russell 2000 surged 4.6% and both Nasdaq and S&P 500 posted gains [1] - BTC was down 1.94% and Ethereum (ETH) fell 3.39%, with only select altcoins like SOL, TRON, and Monero showing gains above 2% [2] Price Action and Trading Range - BTC rallied from the high-$80,000 range to briefly touch $94,700 before sellers emerged, stabilizing near $91,000 after dipping to around $89,200 [3] - Wintermute indicated that the support level for BTC is between $89,000 and $90,000, with resistance at $94,000 to $95,000, highlighting the extreme compression of BTC's trading range since late November [4] - The 30-day trading range for BTC is at the 91st percentile, indicating that price action has rarely been this narrow [4] Historical Context - Historical data suggests that BTC has posted positive returns 90 days after similar compression phases, with three out of four instances showing favorable outcomes [5] ETF Flows - ETF flows experienced significant volatility, starting with $471 million in inflows on January 2 and $697 million on January 5, followed by a sharp reversal with approximately $250 million exiting on Tuesday, $485 million on Wednesday, and $400 million on Thursday [6] - Over $1.1 billion left Bitcoin ETFs, erasing early gains, while ETH products saw outflows of around $260 million; however, the outflows did not indicate panic, as volumes remained healthy [7]