Bitcoin’s muted price action, combined with renewed whale activity, created unsettled market sentiment on December 25.
On that day, a long-dormant Bitcoin whale and asset manager BlackRock transferred large amounts of BTC to exchanges, according to Onchain Lens.
Onchain Lens reported that BlackRock deposited 2,292 Bitcoins [BTC]worth $199.8 million, in Coinbase.
Separately, a whale wallet that has been dormant for eight years deposited 400 BTC, worth $34.92 million, in OKX.
Large holders often drive short-term sentiment as traders watch such transfers for potential sell-side pressure. This dynamic made market participants cautious even without immediate confirmation of spot selling.
Spot Bitcoin ETFs record consecutive outflows
Additionally, US exchange-traded Spot Bitcoin funds extended their losing streak. SoSoValue data showed that Spot Bitcoin ETFs recorded five consecutive days of net outflows.
Source: SoSoValue
That pattern suggested that institutional demand remained vulnerable despite Bitcoin rising above key technical support. Together, ETF outflows and foreign exchange market deposits reinforced the defensive market tone.
Leverage decreased as price stalled
At the time of writing, Bitcoin was trading around $87,700, down about 0.35% on the day. Over the same period, Open Interest fell 0.99% to $57.42 billion, reflecting reduced debt exposure.
That decline signaled that traders were reducing risk rather than aggressively positioning for a breakout. Still, intraday positioning indicated local bullish conviction.
Source: CoinGlass
According to CoinGlass’ Liquidation Map, large leveraged clusters were nearly $85,966 below the price and $88,636 above.
At these levels, intraday traders have built $646.17 million in long-leveraged positions and $422.42 million in short-leveraged positions. This suggests that traders are leaning towards the bullish side and strongly believe that the price of BTC will not fall below the $85,966 level.
Bitcoin price action and key levels to watch
AMBCrypto’s technical analysis on the weekly chart revealed that BTC has been in a tight consolidation zone between the $86,000 and $93,500 level since November 17.
Historically, consolidation breakouts or breakdowns lead to large increases or decreases, and as the price of BTC approaches the lower limit, this has led to fears of a possible collapse below this range.
Source: TradingView
Based on the price action, if sentiment remains unchanged and BTC breaks below the key support at $86,000 with a daily candle below it, it could open the door for a massive downside move.
However, the bearish outlook would only be negated if BTC breaks above the upper limit at the $93,500 level.
Final thoughts
- Whale transfers and ETF outflows highlighted the growing hesitation beneath Bitcoin’s surface stability.
- With leverage declining and price remaining in a tight range, the next move may depend on whether conviction returns or fades further.