Bitcoin has started the year with a strong performance, proving vital demand above the $92,000 mark and gaining more than 6% in price appreciation. The move has renewed investor optimism, cementing Bitcoin's position as a market leader amid a broader crypto market recovery. However, selling pressure continues to cap the price below the psychologically important $100,000 level, leaving many investors questioning who could be offloading BTC at such a critical moment in the cycle.
According to CryptoQuant CEO Ki Young Ju, the answer lies with ancient whales. In a recent study, Ki revealed that former BTC holders have been offloading large amounts of BTC, with over-the-counter (OTC) transactions playing a major role in the recent selling pressure. This suggests a strategic redistribution of holdings, which may influence short-term price movements while potentially setting the stage for new market participants. to enter
As Bitcoin struggles to break the $100,000 barrier, market sentiment remains mixed. On one hand, long-term demand and institutional interest continued to be strong. On the other hand, short-term selling by bullish whales shows the challenges that BTC faces in maintaining the upward trajectory. The coming days will reveal whether BTC can overcome this resistance and start the year with a historic rally.
Bitcoin whales reap profits
As Bitcoin embarks on what investors hope will be another strong year, a closer look at the market's dynamics reveals that old whales are reaping profits amid turbulent times. sure. Over the past few weeks, market sentiment has swung wildly – from pure euphoria and rising prices to concerns about a possible major correction, and now back to outlook optimistic
Amidst this turmoil, CryptoQuant CEO Ki Young Ju has shed light on the forces driving the market. Sharing key thoughts on X, Ju revealed that old whales are actively selling BTC at current levels. Despite their actions, he notes that over-the-counter (OTC) trading volumes and exchange deposits do not cause market crashes. This controlled sales strategy reflects a calculated approach by experienced investors, balancing profitability and market stability.
Ju also clarifies that buying pressure is coming mainly from US institutions, especially on Coinbase. However, there is a caveat – Coinbase's daily price, a key indicator of institutional demand, is at a two-year low. This indicates that although institutional players are involved, their activity is not as strong as it needs to be to move Bitcoin to its next major rally.
For Bitcoin to maintain the upward trend, Ju emphasizes the need for a revival in institutional demand. A renewed increase in buying pressure could pave the way for BTC to break through resistance levels and continue rising. Until then, the market will probably remain in a delicate balance.
Technical Situation: BTC Raised?
Bitcoin is currently trading above the $95,000 mark, signaling short-term strength and raising cautious optimism among investors. This level is seen as a pivotal point in the ongoing price action, as every time BTC holds above it strengthens the prospect of a push towards the critical $100K level. A break above $100K is critical if bulls want to regain control and ignite a decisive upward move that could set the stage for new all-time highs.
Despite this, the market still shows considerable uncertainty. While holding above $95K offers a glimpse of hope, bulls have yet to gather the necessary momentum to overcome current selling pressure. This suggests that a breakout may need more time, as the market evaluates the next path.
On the other hand, the $92,000 level cannot be overemphasized. As a key demand area, holding above this indicator is critical to maintaining Bitcoin's long-term bullish structure. A break below could trigger a deeper correction, testing investor confidence.
As Bitcoin navigates this range-bound level, market participants will continue to keep watch, focused on sustaining these critical levels to signal strength and readiness for the next step up in the circle of the bull.
Featured image from Dall-E, chart from TradingView
Source: https://bitcoinist.com/whos-selling-bitcoin-top-analyst-uncovers-old-whale-activity/
