Bitfinex Report: Sustained Bitcoin Demand Keeps It Strong in the Mid-Term

BlockBeats News, January 20th, Bitfinex released a report stating that "Bitcoin staged a significant rebound last week, briefly dropping to a low of $89,698 and then climbing back to above $100,000.

The drop below $90,000 triggered a large number of liquidations, with a record $818 million in forced liquidations on January 13th, including $592 million in long positions. The average cost basis of short-term holders was $88,400, playing a crucial role in this pullback, supporting the price. Historically, the cost basis of short-term holders has often served as a reliable support level, and the low point last week was very close to this level, triggering the rebound. However, if the price drops below the cost basis of short-term holders, it could create selling pressure, further triggering a sell-off.

This rebound was mainly driven by positive spot buying, as evidenced by the sharp increase in spot cumulative trading volume. This indicator shows significant buying pressure, especially on U.S.-based exchanges. The buying pattern is similar to the activity seen during previous MicroStrategy and ETF purchases, further reinforcing the view that institutional demand remains strong.

However, the spot buying pressure from last week may need some time to replenish, possibly triggering a brief pullback before resuming the upward trend. Bitcoin's resilience and sustained demand keep it strong in the medium term."