Bitcoin ($BTC) moves through high volatility zones as the crypto market shows signs of potential weakness. Analysis by Ali indicates potential market dangers and a possible end to the bull phase when Bitcoin crosses below $97,877 or $91,700 support levels. The following breakdown examines all relevant elements.
Realized Profits Suggest Market Top Risk
The Bitcoin market usually peaks when realized earnings reach their highest point. The December 2024 profits exceeding $3 billion signify a possible local top for $BTC. Profit-taking activities generate additional market sell orders that may impede Bitcoin price growth.
Miners and Long-Term Holders Increase Selling Pressure
Bitcoin miners contribute additional force to the market selling volume. During the midpoint of January 2025, $BTC miners disposed of more than 20,000 $BTC, which had an estimated worth of $2 billion. Market sentiment could undergo a substantial shift because of this large increase in supply if demand levels do not match the new market conditions.
Long-term holders (LTHs) play an active role in the present market sell-off situation. The Bitcoin holdings of Long-Term Holders declined by 75,000 BTC throughout the previous week. The movement of Bitcoin investors who traditionally hold their positions points to a possible change in their long-term investment plans.
Declining Capital Inflows and Network Activity
The dropping trend in capital inflows indicates a bearish market signal. Bitcoin capital inflows experienced a drastic 63.3% decrease between December 10, 2024, and the present, reducing from $134.65 billion to $43.37 billion. The market shows fewer new buyers entering, reducing Bitcoin’s capacity to maintain its price increase.
According to data, Bitcoin network activity reached its lowest point since November 2024. The reduction in market participation shows decreased interest and investor involvement, further driving down prices.
Key Support Levels and Bullish Models
The presence of warning signs does not exclude the possibility that $BTC continues to increase according to different models. Two indicators suggest that Bitcoin may see a bull run. The cup-and-handle pattern in Bitcoin technology indicates future price growth reaching $276,400.
Halving cycle theory shows evidence that market conditions will reach a peak sometime between May and October 2025, although it indicates positive potential for long-term bull movements.
Critical Levels to Watch
The market wants Bitcoin to stay above $91,700 because any fall below this level could trigger deeper price declines, and the important resistance, which stands at $97,877, must persist. A downward movement through these support levels will initiate a market decline that could reach $74,000 and potentially destroy the bullish trend.
All market participants will focus on this crucial set of support and resistance indicators during the upcoming period. Traders should exercise caution because Bitcoin exists where bullish opportunities combine with bearish threats.
