Bitcoin has started the year with a strong performance, confirming crucial demand above the $92,000 mark and gaining over 6% in price appreciation. This move has renewed investor optimism, reinforcing Bitcoin’s position as the 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 questioning who could be offloading BTC at such a critical time in the cycle.
According to CryptoQuant CEO Ki Young Ju, the answer lies with old whales. In a recent analysis, Ki revealed that veteran BTC holders have been offloading significant 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 could impact short-term price movements while potentially setting the stage for new market participants to enter.
As Bitcoin struggles to breach the $100,000 barrier, market sentiment remains mixed. On one hand, long-term demand and institutional interest signal continued strength. On the other hand, short-term selling by influential whales highlights the challenges that 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 Are Taking Profits
As Bitcoin embarks on what investors hope will be another strong year, a closer look at market dynamics reveals old whales taking profits amidst periods of uncertainty. Over the past few weeks, the market sentiment has shifted dramatically—from extreme bullishness and soaring prices to concerns about a possible significant correction, and now back to an optimistic outlook.
Amid this turbulence, CryptoQuant CEO Ki Young Ju has 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 over-the-counter (OTC) transaction volumes and exchange deposits aren’t causing market crashes. This controlled selling strategy indicates a calculated approach by seasoned investors, balancing profit-taking with market stability.
Ju further highlights that buying pressure is primarily coming from U.S. institutions, especially on Coinbase. However, there’s a caveat—Coinbase’s daily premium, a key indicator of institutional demand, is at a two-year low. This suggests that while institutional players are involved, their activity isn’t as robust as it needs to be to propel Bitcoin toward its next major rally.
For Bitcoin to sustain its upward momentum, Ju emphasizes the need for a recovery in institutional demand. A renewed surge in buying pressure could pave the way for BTC to break through resistance levels and continue its ascent. Until then, the market may remain in a delicate balance.
Technical Set Up: BTC On The Rise?
Bitcoin is currently trading above the $95,000 mark, signaling short-term strength and instilling cautious optimism among investors. This level is seen as a pivotal point in the ongoing price action, as every hour that BTC holds above it strengthens expectations of a potential push toward the critical $100K level. A breakout above $100K is essential 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 continues to reflect significant uncertainty. While holding above $95K offers a glimmer of hope, bulls are yet to gather the necessary momentum to overcome prevailing selling pressure. This suggests that a breakout might require more time, 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 critical to maintaining Bitcoin’s long-term bullish structure. A breach below it could trigger a deeper correction, testing investor confidence.
As Bitcoin navigates this range-bound phase, market participants remain watchful, with the focus on maintaining these crucial levels to signal strength and readiness for the next leg up in the bull cycle.
Featured image from Dall-E, chart from TradingView
