Key Takeaways
What’s Driving Bitcoin’s Continued Fall Below $100,000?
Aggressive selling by whales, miners, and institutions has increased downward pressure on the price of BTC.
What technical indicators point to further downside risk for Bitcoin?
The SMI Ergodic Oscillator and RVI both indicate continued bearish momentum and increasing volatility.
Since the $100,000 mark dropped, Bitcoin [BTC] has remained below that level for eight days in a row, a series of losses not seen since the post-liberation dip in early April.
In fact, at the time of writing, Bitcoin was trading at $92,229, up 0.38% on the daily charts. Before these small gains, BTC was on a downward trajectory, falling 11.03% on the weekly charts.
Amid this ongoing bearish trend, prominent market players have capitulated and significantly increased their spending.
Bitcoin holders are dumping aggressively
Undoubtedly, BTC has continued to fall under intense selling pressure from whales and other large entities. According to data from Checkonchain, the Holder Net Position Change remained negative in the fourth quarter.
Source: Checkonchain
At the time of writing, this measure had fallen to -60.07k BTC, the lowest level since early August, reflecting intense selling from holders.
In reality, Look at chain observed such sales activities. According to the on-chain monitor, Bitcoin OG Owen Gunden sold all his remaining 2,499 BTC, worth $228 million, via Kraken.
The OG went on an aggressive sell-off and dumped all 11,000 BTC, worth $1.12 billion, reflecting a strong bearish sentiment from him.
At the same time, BlackRock poured another 6,735 BTC, worth $616 million, into Coinbase Prime, further heightening fears of a sell-off.
Miners are also ruining the party
Coupled with this, Bitcoin miners have also been on a selling spree, selling 71.9k BTC over the past seven days.
Mara Holdings is one such miner. According to Look at chainMARA deposited 644 BTC, worth $58.7 million, with FalconX and Coinbase Prime.
Source: CryptoQuant
Often, miners sell during a downturn, tightening margins and forcing them to outsource their operations to finance operating costs.
In total, these three entities sold 9,878 BTC, worth $902.7 million, in the past day. Typically, the increased sales of these two groups puts more pressure on an already weak market, risking further losses.
Is the $88,000 support in jeopardy?
According to AMBCrypto, Bitcoin’s downward trend has continued as it struggles with increased holder selling.
As a result, the SMI Ergodic Oscillator has remained negative for nine consecutive days, reaching -0.03 at the time of writing, indicating the dominance of the sellers.
Source: TradingView
Meanwhile, Bitcoin’s Relative Volatility Index (RVI) has remained below 50 for eight days in a row, a level that typically signals increasing downside volatility and strengthening bearish momentum.
Given these circumstances, BTC remains vulnerable to further losses. If selling pressure continues alongside rising volatility, Bitcoin could dip below the $90,000 mark again.
Should the USD 88,000 support level break, the next major support is near USD 86,482. To reverse this bearish outlook, BTC would need a daily close above $93,428.