Can Bitcoin Regain $90K? Bulls at Risk as Long-Term Holders Increase Selling

Key Takeaways:

• Bitcoin has declined below the $90,000 mark amid increased selling pressure from whales and long-term holders.
• Whales have deposited over $400 million of BTC into exchanges, indicating intensified sell-side pressure.
• Long-term holders have sold 68,650 BTC in the past 30 days, potentially signaling a distribution phase.
• Analysts suggest a potential support zone for a bounce between $84,000 and $86,000 as Bitcoin faces a decline.
• Monitoring key support and resistance levels is crucial for anticipating Bitcoin’s next move.

WEEX Crypto News, 2026-01-22 07:42:53

Bitcoin’s recent dip below $90,000 has sparked a renewed discussion among investors and analysts about the future trajectory of the leading cryptocurrency. The decline comes at a time when whales, large holders of Bitcoin, and long-term investors appear to be intensifying their selling activities, putting additional pressure on the market.

Whales’ Impact on Bitcoin’s Price Movement

The role of whales—individuals or entities holding substantial amounts of Bitcoin—influencing market dynamics is significant. Recent data from CryptoQuant’s whale screener suggests that another wave of substantial selling pressure is being exerted on Bitcoin. This renewed pressure has contributed to Bitcoin’s slide under the $90,000 threshold.

Whale activity in cryptocurrency markets can serve as a barometer for upcoming price movements. Significant deposits into exchanges often foreshadow increased sell-side activity, as whales may seek to offload their holdings or adjust their positions. In this instance, more than $400 million worth of Bitcoin has been deposited into spot exchanges. Such movements are usually interpreted as preparations for asset distribution, leading to heightened selling pressure.

Long-Term Holders Opt for Profit-Taking

In tandem with the whale movements, long-term holders of Bitcoin have also been accelerating their selling activities. The long-term holder (LTH) net position change, which reflects the total Bitcoin in possession of long-term holders, has been negative since early January. Over the past 30 days, approximately 68,650 Bitcoin have been sold by this investor segment, suggesting a deliberate effort to lock in profits during market rallies.

This pattern is part of what some analysts view as a broader distribution phase. During such phases, seasoned investors start realizing gains following significant price rallies. The latest Bitcoin surge to $97,000 provided a lucrative opportunity for these holders to cash out, leading to an increase in market liquidity and potential downward pressure on prices.

An interesting aspect of the current scenario is how it mirrors past market behavior. Historical data points to similar sell-offs marking local bottoms before a significant rebound in prices. For instance, a comparable level of LTH selling in mid-December 2025 preceded a recovery of Bitcoin from $84,000 to $94,700 by early January.

Navigating Potential Support Levels

For Bitcoin enthusiasts and market participants, the critical question remains: where will Bitcoin find its support? As prices fluctuate, identifying key support zones becomes essential in forecasting potential bounces or reverse trends.

At present, the Bitcoin to US Dollar trading pair stands at $89,000, with the next significant support level projected at $87,300—the 100-week Simple Moving Average (SMA). Should the price drop further, a vital psychological zone of interest lies between $84,000 and $80,500, a local low point reached on November 22. This area is viewed by analysts as the next potential floor before further market downside can be averted.

External and Internal Market Factors in Play

Several factors are influencing Bitcoin’s recent performance, ranging from macroeconomic developments to intrinsic market dynamics. Externally, geopolitical tensions and economic uncertainties can contribute to market instability, affecting traders’ sentiment and driving volatility. As Michael van de Poppe from MN Capital noted, “Bitcoin breaks down into the range and starts to plummet as geopolitics get worse.”

Moreover, key technical indicators like the Relative Strength Index (RSI) and moving averages play a crucial role in the analysis. Charts suggest the four-hour RSI is nearing oversold territory, indicating potential for a short-term bounce. However, such a rebound might not signal a complete reversal of the recent downward trend.

The Bigger Picture for Bitcoin Investors

The current market phase represents a complex interplay of factors each influencing Bitcoin’s price direction. Amid heightened whale activities, increased selling from long-term holders, and evolving market conditions, investors should carefully assess potential outcomes. Bitcoin’s established volatility requires staying attuned to both fundamental and technical signals to better inform market positions.

Given the evolving landscape, potential investors should take a cautious approach and conduct thorough research when considering investment decisions. It’s essential to remain informed about unfolding developments and their implications on Bitcoin’s value. While history has shown that Bitcoin can recover from such correction phases, each scenario presents unique challenges and opportunities that must be carefully navigated.

FAQs

Why is Bitcoin’s price currently declining?

Bitcoin is currently experiencing a decline due to increased selling pressure from whales and long-term holders. Large amounts of BTC have been moved to exchanges, typically indicating a selling intention. This move has created elevated sell-side pressure, contributing to the price drop.

What do whales do in cryptocurrency markets?

In cryptocurrency markets, whales are individual or institutional holders of significant amounts of digital currencies like Bitcoin. Their actions, such as large-scale deposits to exchanges, can greatly influence market trends and cause price fluctuations, as these activities often precede selling strategies.

Is there a trend of long-term holders selling their Bitcoin?

Yes, there is an observable trend where long-term holders are selling significant portions of their Bitcoin holdings. Approximately 68,650 Bitcoin have been sold by this group recently, indicating a phase of profit-taking and distribution amidst recent market rallies.

What are the key support levels for Bitcoin right now?

Current technical analysis suggests that the next major support level for Bitcoin is at $87,300, which represents the 100-week SMA. Below that, the psychological support range lies between $84,000 and $80,500, where prices could potentially stabilize.

Could Bitcoin’s price recover soon?

While there might be a short-term bounce due to oversold conditions, it doesn’t guarantee a full reversal in the current trend. The market remains volatile, and any long-term recovery will depend on various factors such as macroeconomic conditions, investor sentiment, and developments within the cryptocurrency ecosystem.