Analysts recently warned of a potential worsening phase for Bitcoin’s price, which subsequently hit a seven-week low at a daily close on January 22, dropping to $39,440. A minor recovery was followed by renewed selling pressure, with Bitcoin trading at $39,474 at the time of the report.
Bitcoin is facing continuous selling pressure from various sources, including Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle. BTC/USD pair has seen up to a 20% drop from January’s peak, with some investors predicting further losses as liquidations increase.
Keith Alan of Material Indicators uploaded a chart showing long and short signals, warning that Bitcoin needs to gain momentum around the current $40,000 price level to avoid a potential drop to $38,000.
Separate graphics for the Binance BTC/USDT pair highlighted bid interest just below spot low levels, but there were no sellers up to the $44,000 level. Material Indicators also pointed out a Bitcoin whale class that had been consistently buying over the past month, reaching $800 million.
Bloomberg Intelligence analyst James Seyffart noted that GBTC has not yet exited the selling process, selling a total of $640 million worth of Bitcoin on January 22. However, Seyffart highlighted increased inflows into other ETF products, particularly BlackRock’s iShares Bitcoin Trust (IBIT), which gained $272 million in a day.
