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Bitcoin recorded a decline to the $91,000 area on Tuesday after temporarily recovering to the $94,000 level the previous day.
Recent data revealed strong selling pressure near key resistance, despite improving fundamental demand indicators.
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Large sell orders cap Bitcoin’s rise near $95,000
The pullback was followed by a failed attempt to break out of the $94,000-95,000 range, with order book data showing nearly $100 million of sell orders backlogged on major exchanges.
This concentration of liquidity acted as a ceiling of resistance, restraining the increase and causing investors to take short-term profits.
The $91,000 area for Bitcoin is an entry point for a large volume of new buyers entering the market in early 2025. These buyers seem to be taking short profits today after recent volatility.
The order book heat map showed that sellers are absorbing the buying pressure as Bitcoin enters this zone.
After the upward momentum slowed, leveraged traders liquidated their positions, accelerating the decline toward $91,000. This move reflects market structure rather than a sudden change in sentiment.
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The price reversal is still expected
Despite the decline, data and blockchain flows indicate that the overall trend remains positive.
Data from CryptoQuant shows that the ratio between the reserves of Bitcoin and Stablecoin on Binance has begun to rise again, indicating an increase in purchasing power that awaits the party.
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A higher ratio indicates that traders are holding on to Stablecoin and waiting for suitable entry points, usually injecting liquidity during pullbacks rather than chasing strong increases.
This gradual accumulation of liquidity is usually accompanied by consolidation phases, where the price fluctuates within a specified range before making a new directional movement. This usually does not support the recording of sharp and strong increases in the short term.
Institutional questions also maintain stability. On January 5, funds traded on the Bitcoin exchange recorded a net outflow of about $697 million, bringing cumulative inflows to about $58 billion.
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Investors continued to pour money into the market even as Bitcoin approached resistance levels, suggesting that demand is driven by long positions rather than speculative momentum.
The discrepancy between strong flows into ETFs and weak prices in the short term highlights a growing gap in the market.
Long-term buyers continue to accumulate Bitcoin, while short-term traders react to technical levels and liquidity gaps; This reaction explains why Bitcoin failed to sustain gains above $94,000 without causing a widespread selloff.
There were no signs of massive flows to exchanges or heavy distribution from long-term Bitcoin holders during the downturn.
Data currently indicate that the market is going through a consolidation phase rather than a trend reversal; Going beyond the $95,000 level will likely require continued spot demand, reduced liquidity on the sell side, and the completion of a buying wave in risk markets.
Until then, corrections towards the low $90,000 range appear to be a normal part of the market absorbing recent gains.
