Bitcoin Price Analysis: Crucial Zone Determines Next Move
Bitcoin is currently at a critical juncture, balancing between bearish pressure and bullish resilience. The recent test of support near the $110K level has put BTC price in a make-or-break situation that could set the tone for its next major move. A breakdown below $110K may trigger accelerated selling, potentially leading to a deeper correction. On the other hand, a rebound towards $115K could restore bullish momentum and attract fresh buying interest. With market volatility remaining elevated, traders are closely monitoring liquidity zones, institutional flows, and macroeconomic signals. The upcoming sessions will likely determine whether Bitcoin stabilizes or enters a broader correction phase.
Large Holders Contributing to Market Sell-Off
The beginning of the week saw a significant increase in selling pressure that pushed the Bitcoin price from the consolidation range above $115K to local lows below $112,000. This surge in volume, from around $20 billion to over $66 billion, indicated substantial selling activity from investors. On-chain data suggests that large holders, commonly referred to as whales, have been capitalizing on profits.
Data from Glassnode reveals that selling pressure has intensified as whales have been actively selling off their holdings. Wallet cohorts holding over 10,000 BTC are in the distribution phase, leading to a decline in long-term holder supply. Over the past few months, the supply held for more than two years has decreased from 70% to 60%, while the supply held for over two years has dropped from 57% to 52%. This metric measures the relative accumulation based on the size and volume of tokens acquired over the past 15 days.
What’s Next for Bitcoin Price?
Following a rejection from the $120K level, the Bitcoin rally has predominantly been bearish. Although the price experienced a 13% drop, the bulls quickly initiated a recovery. Despite the bounce back, the price remains within a consolidation range, maintaining the bearish influence over the rally. As a result, bearish targets remain active, with the potential for a further decline in price.
The high timeframe chart for Bitcoin indicates that the price has been following a steep ascending trend within a rising parallel channel. Weekly Bollinger bands are contracting, signaling a decrease in volatility as volume diminishes. Additionally, the Chainkin Money Flow (CMF) is trending back towards 0, indicating an increase in selling pressure. Traders seem to be withdrawing funds from Bitcoin, which could weigh on the price. Consequently, the long-term price action suggests extended bearish momentum, potentially pushing the price towards the lower bands of the Bollinger in the short term.
In Conclusion
Whale sell-offs have played a significant role in the recent pullback and reduced volatility of Bitcoin. Despite this, the cryptocurrency has managed to maintain a bullish range. Once the upward pressure subsides, Bitcoin price is expected to undergo a minor pullback followed by a strong rebound towards its previous levels.
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