Bitcoin started the year with a strong performance, confirming crucial demand above the $92,000 mark and gaining over 6% in price appreciation. The move has renewed investor optimism, strengthening Bitcoin’s position as a market leader amid a broader crypto market recovery. However, selling pressure continues to cap the price below the psychologically significant $100,000 level, leaving many investors wondering who could dump BTC at such a critical point in the cycle.
According to Ki Young Ju, CEO of CryptoQuant, the answer lies in old whales. In a recent analysis, Ki revealed that veteran BTC holders have been offloading significant amounts of BTC, with over-the-counter (OTC) trading playing a major role in the recent selling pressure. This suggests a strategic redistribution of assets, which could impact short-term price movements while potentially paving the way for the entry of new market participants.
As Bitcoin struggles to break the $100,000 barrier, market sentiment remains mixed. On the one hand, long-term demand and institutional interest demonstrate continued strength. On the other hand, short-term selling by influential whales highlights the challenges BTC faces in maintaining its upward trajectory. The coming days will reveal whether BTC can overcome this resistance and start the year with a historic rally.
Bitcoin Whales Make Profits
As Bitcoin embarks on what investors hope will be another strong year, a closer look at market dynamics reveals that old whales are taking profits amid periods of uncertainty. Over the past few weeks, market sentiment has changed dramatically, from extreme optimism and surging prices, to concerns about a possible significant correction, and finally back to an optimistic outlook.
Amid this turbulence, Ki Young Ju, CEO of CryptoQuant, shed light on the forces driving the market. Sharing key insights on X, Ju revealed that old whales are actively selling BTC at current levels. Despite their actions, he notes that high volumes of over-the-counter (OTC) trading and foreign exchange deposits do not cause stock market crashes. This controlled selling strategy indicates a calculated approach by seasoned investors, balancing profit-taking and market stability.
Ju further points out that the buying pressure is mainly coming from US institutions, notably on Coinbase. There is one caveat, however: Coinbase’s daily premium, a key indicator of institutional demand, is at its lowest level in two years. This suggests that even though institutional players are involved, their activity is not as robust as it needs to be to propel Bitcoin towards its next major rally.
For Bitcoin to maintain its upward momentum, Ju highlights the need for a recovery in institutional demand. A fresh burst of buying pressure could pave the way for BTC to break through resistance levels and continue its ascent. Until then, the market could remain in a delicate balance.
Technical setup: BTC on the rise?
Bitcoin is currently trading above the $95,000 mark, signaling near-term strength and instilling cautious optimism among investors. This level is considered a crucial point in the ongoing price action, as every hour that BTC remains above it reinforces expectations of a potential push towards the critical $100,000 level. A breakout above $100,000 is essential if bulls are to regain control and trigger a decisive upward move that could pave the way for new all-time highs.
Despite this, the market continues to reflect great uncertainty. While holding above $95,000 offers a glimmer of hope, the bulls have yet to find the momentum to overcome the current selling pressure. This suggests that a breakout could take longer, as the market evaluates its next direction.
On the other hand, the importance of the $92,000 level cannot be overstated. As a key demand zone, holding above this mark is essential to maintaining Bitcoin’s long-term bullish structure. A break below could trigger a deeper correction, testing investor confidence.
As Bitcoin moves through this limited phase, market participants remain vigilant, focusing on maintaining these crucial levels to signal strength and readiness for the next stage of the bull cycle.
Featured image of Dall-E, chart by TradingView
