Bitcoin’s price is now heading for a bullish recovery, thanks to the sharp decline in selling pressure on the exchanges.
The regulatory environment remains a key factor in this setup, especially as talk of a possible revival grows louder. That’s why it’s worth seeing how the market could develop in the coming weeks.
A drop in selling pressure…
Bitcoins [BTC] recent performances include recovering from $84,000 to almost $93,000, with the crypto stabilizing around $91,400 at the time of writing.
A major driver of this increase in momentum is the sharp decline in total exchange volume, with the same falling from 88,000 BTC to approximately 21,000 BTC.
Source: CryptoQuant
When currency deposits rise, it means investors are moving assets to sell. However, the aforementioned decline underlined the opposite: bullish strength could gradually return.
Average deposits per investor, according to CryptoQuantalso dropped from 1.1 BTC to 0.7 BTC, confirming that selling pressure has subsided. Such a reduction in deposits largely reflects the actions of two groups: whales and short-term holders (STH).
Whales and STHs are regaining their confidence
The latest drop in Bitcoin’s price was mainly caused by whales and short-term holders reducing their sales.
Over the past month, whale deposits – from both new and old participants – on the exchanges have fallen from 47% to 21%. STH activity reflected this trend over the same period. This sales phase reflected whales and STH achieved negative margins, meaning they sold at a loss.
However, one pattern stood out: Whales sold around $3.2 billion worth of Bitcoin during this period, while the STH SOPR dropped to 0.97 and has remained near that level ever since. According to CryptoQuant, a recovery usually follows when profit realization from a loss reaches a certain threshold.
“Historically, selling pressure diminishes when market participants realize they have incurred heavy losses.”
Source: CryptoQuant
Whether that threshold has peaked is not yet clear, but the emerging momentum could be a sign that a recovery is approaching.
If momentum continues to build, Bitcoin is likely to swing towards $98,700 – a key resistance level on the chart. According to on-chain traders’ projections, a stronger momentum could extend the move towards the $102,000-$112,700 zone.
What do the experts say?
Two industry leaders believe that the market’s recent behavior reflects a fragile but improving situation for Bitcoin, shaped by macro uncertainty and waning selling pressure.
Farzam Ehsani, co-founder and CEO of VALR, believes the market is in a “delicate balance” shaped by expectations that the Fed will ease monetary policy. According to the director, this optimism makes the market “very vulnerable to any cooling signal from the Federal Reserve.”
Ehsani added that Bitcoin’s narrowing range towards $92,000 is indicative of increasing tension in the market, with a potential breakout likely to set the tone for the coming months.
Similarly, NoOnes CEO Ray Youssef said Bitcoin’s recent rebound is a reflection of a market stabilizing after forced unwinds and heavy selling by long-term holders. While selling pressure has eased, he warned that “the buying depth needed for a sustained rally remains to be established,” pointing to still weak ETF inflows and weak spot demand.
He also claimed that improving flows and renewed risk appetite could still open the way for Bitcoin to reclaim the top of its range and work toward $100,000 heading into early 2026.
Final thoughts
- Bitcoin sales on exchanges have fallen again after whales and short-term holders halted operations.
- On-chain data suggests that a move towards $98,700 remains the short-term target for the cryptocurrency’s price.