Bitcoin, often referred to as BTC, has recently dropped below the $90,000 mark amid increasing selling pressure from long-term holders. During Tuesday’s trading session in New York, major holders deposited over $400 million into exchanges, indicating a potential for further declines.
Key Highlights:
- Bitcoin has dipped under $90,000 as whales offload significant amounts.
- Long-term holders sold around 68,650 BTC in the last 30 days.
- Analysts suggest looking for support levels between $84,000 to $86,000 for a potential bounce.
Whale Sales Boost Selling Pressure
Data from CryptoQuant’s whale tracker indicates a new surge in aggressive selling, driving Bitcoin prices downward. The significant deposits suggest that whales are preparing to sell off their holdings or are increasing liquidity for sales.
“Typically, large deposits of BTC into exchanges signal intentions to sell or increase sell-side liquidity,” said CryptoQuant analyst Amr Taha.
The graph illustrates that whales have significantly increased their deposits of BTC to exchanges, further pushing the asset lower.
Potential for a Rebound?
Despite the pressure, there is a glimmer of hope for bulls as the current selling rates resemble previous patterns that preceded recoveries. Bitcoin’s last major price surge took it from $84,000 to $94,700 after a pullback.
Market analysts remind us that critical support must hold to avoid further declines, with Bitcoin trading at about $89,000 as of now, and significant levels of interest surrounding $84,000. If the price settles below $84,000, much more severe corrections could follow.
“We could see a brief recovery, but it won’t necessarily mean a full reversal,” added MN Capital’s Michael van de Poppe, referencing oversold conditions as geopolitical concerns mount.
In conclusion, while Bitcoin is under pressure from long-term selling, strategic support levels are key to watch in the coming days.
