Bitcoin fell below $90,000 during Tuesday’s trading session in New York. Selling pressure from large investors and long-term holders intensified in the market, raising concerns about a deeper correction and increased volatility.
Large investors move hundreds of millions of dollars in BTC
According to data from the CryptoQuant platform, there has been a second significant wave of Bitcoin transfers to spot exchanges. The Whale Screener tool recorded transfers of more than $400 million in BTC from the wallets of large investors, with a similar movement of $500 million already taking place in January. Analyst Amr Taha points out that such transfers usually signal preparation for a sale or an increase in liquidity for asset distribution.
Data also shows that the market has entered a distribution phase, with long-term holders realizing profits. Since the beginning of January, they have sold approximately 68,650 BTC, and their net position change remains negative. Investors are taking advantage of price increases to lock in profits, including Bitcoin’s recent high of around $97,000. Increased selling pressure thus increases the risk of a decline to the $80,000 level.
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Bitcoin under pressure
Technical analysis shows that breaking through the $90,000 mark has weakened the bullish scenario. At the time of writing, BTC/USD was trading around $88,000, with the nearest support at $87,300, which corresponds to the 100-week moving average. Below that is a strong psychological zone between $84,000 and $86,000, where the price was trading at the end of November and where analysts expect a possible rebound.
MN Capital founder Michael van de Poppe notes that geopolitical tensions and macroeconomic uncertainty are keeping Bitcoin in a lower trading range. According to him, the four-hour RSI indicator is at similarly oversold levels as during the previous decline to $80,000, which may support a technical rebound in the short term. However, this is not a confirmation of a trend reversal — further developments will depend on trading volume and investor reaction to global economic news.
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