Can Bitcoin regain $90K? Bulls at risk as long-term holders ramp up selling

As Bitcoin struggles to maintain its upward momentum, analysts are expressing concerns that the cryptocurrency may face a significant decline, potentially dropping to around $84,000. This downturn is largely attributed to a rise in deposits from major holders, often referred to as "whales," into exchanges, coupled with a notable increase in selling activity among long-term investors.

Recent data indicates that large-scale Bitcoin holders are taking advantage of the current market conditions to liquidate their assets, leading to increased selling pressure. This trend poses a risk to Bitcoin's ability to reclaim the $90,000 mark, which has become a psychological barrier for many traders. The phenomenon of long-term holders selling their Bitcoin can often signal waning confidence in the asset's short-term prospects, potentially prompting further declines.

Market observers are closely monitoring the flow of Bitcoin into exchanges, as higher deposit volumes typically suggest that sellers are preparing to offload their holdings. This behavior is particularly notable among whales, who possess substantial amounts of Bitcoin and can significantly influence market dynamics with their trading decisions.

The current market sentiment appears cautiously bearish, with many investors remaining on the sidelines as they assess the impact of these selling trends. Some analysts suggest that unless Bitcoin can stabilize and attract new buying interest, it may struggle to break past the $90,000 level in the near term. The overall crypto market remains highly volatile, and external factors, such as regulatory developments and macroeconomic indicators, continue to play a crucial role in shaping investor sentiment.

As the situation unfolds, traders are advised to remain vigilant and consider the broader implications of long-term holder behavior on Bitcoin's price trajectory. The coming days will be critical in determining whether Bitcoin can recover from this selling pressure or if it will further decline below key support levels.

Key Takeaways

Bitcoin faces potential decline to $84,000 due to increased selling by long-term holders.
Rising whale deposits into exchanges indicate a growing willingness to sell among major holders.
Market sentiment remains cautious, with traders closely watching for signs of stabilization.
Bitcoin's ability to break past the $90,000 mark hinges on attracting new buying interest.

This article was inspired by reporting from CoinTelegraph. · Report an issue