Bitcoin [BTC] recovered from the $86,000 dip and rose to a local high of $89,497 before rebounding somewhat. At the time of writing, BTC was trading at $89,008, up slightly by 0.93% from the daily charts.
With Bitcoin successfully defending $88,000, the market signaled a gradual shift in sentiment among all participants.
Bitcoin whale adds $89 million BTC
Bitcoin’s extended stay below its long-term moving averages has created a perfect buying window for investors, including whales.
In fact, major entities have taken this market slide as an opportunity to buy Bitcoin at a discount.
According to Onchain lensa whale bought 1,000 BTC, worth $89.2 million, from OKX in two batches of 500 BTC. The whale’s move to accumulate during a broader bearish market structure indicated bullish sentiment.
Interestingly, this case of whales is not an isolated case, as buying activity appears to be recovering across the market.
According to CWInvestors on Binance and OKX have increased their BTC purchasing activity. At these exchanges, buyers have significantly outpaced sellers in both the spot and perpetual markets.
Source: CoinGlass
Also, Bitcoin’s exchange net flow turned negative after remaining positive for two consecutive days. At the time of writing, Spot Netflow held approximately $41 million, indicating increased outflows, with more than $2.55 billion flowing out of the exchanges.
Typically, higher outflows and negative net flows indicate that buyers have dominated the market and crowded out sellers.
American investors are holding back the market
While demand for Binance and OKX has signaled a recovery, US investors have remained bearishwith Coinbase increasing the selling pressure.
Therefore, the downward pressure on BTC comes from Coinbase as American whales and retail continue to sell at small profits. This is further evidenced by the negative Coinbase Premium Index.
Source: CryptoQuant
In fact, the index has remained largely negative, with only two positive readings in thirty days.
Additionally, US spot ETFs have recorded net inflows just once in the past seven days. On January 27, Bitcoin ETFs recorded net outflows of over $147.3 million.
Source: Sosowaarde
Weakening ETFs further showed that US investors, including institutions, were extremely bearish and active on the sell side. These market conditions also weaken BTC and expose it to potentially more losses.
BTC at crossroads
Bitcoin recovered from the $86,000 drop as demand on OKX and Binance recovered slightly, especially from whales. However, BTC failed to post any significant gains as Coinbase investors put pressure on the market.
Bitcoin’s Relative Strength Index (RSI) was evidence of these market conditions. This momentum indicator jumped from 35, recorded three days ago, to 46 at the time of writing.
Source: TradingView
Although the RSI reached these levels, it remained in the bearish zone, indicating that buyers’ efforts were insufficient to trigger a bullish reversal. These two conflicting forces have placed BTC at a crossroads.
Therefore, for a bullish reversal, buyers of Binance and OKX must overcome the selling pressure from Coinbase. By doing this, Bitcoin will reclaim $93,197,000, based on the Future Grand Trend Indicator.
Conversely, the continuity of current market conditions will see BTC trading within the $88,000-90,000 range, with $86,000 as the main support.
Final thoughts
- A Bitcoin whale bought 1,000 BTC, worth $89.2 million, as demand signals recovery on Binance and OKX
- Bitcoin continues to face strong downward pressure from Coinbase investors, with ETFs recording outflows of $147 million.