Market Overview
Bitcoin's recent rally in January has encountered resistance at the $94,000 level, leading to a test of the $90,000 price point once again. The price has seen a sharp decline to $89,200, and for any bullish momentum to resume, Bitcoin must break above this resistance level.
Market Sentiment
Analysts are divided on Bitcoin's near-term prospects. Some suggest that the recent bearish trend may limit any potential strength in the market. Retail investors appear to be shifting their focus towards gold and silver, while institutional players are exercising caution following the recent downturn.
Trader Roman expressed on X, "I still believe 76k is coming and all this sideways movement is just a reset to get there. I don’t see any signs of reversal, and HTF is still very bearish."
Institutional Activity
Despite the bearish sentiment, BlackRock has been actively accumulating Bitcoin, adding nearly 9,000 BTC in the first week of January. This move indicates a rebuilding of exposure after a year-end drawdown in 2025, suggesting a potential accumulation phase for Bitcoin. As of now, BlackRock holds approximately 780,400 BTC, valued at around $70 billion.
Data from Lookonchain reveals that BlackRock's recent purchases totaled 9,619 BTC, valued at approximately $878 million. However, much of this accumulation is likely tied to backing their ETF rather than a long-term bullish bet on Bitcoin.
Long-Term Holder Behavior
Long-term holders of Bitcoin are showing signs of reluctance to sell, with selling rates at their lowest since 2017, despite the elevated prices. The Exchange Inflow Coin Days Destroyed (CDD) metric on Binance has reached its lowest level since 2017, indicating that older coins are not being moved to exchanges in significant quantities. The long-term holder supply has decreased from 15 million in July 2025 to 13.6 million in November, but it has stabilized over the past two months.
This behavior suggests that long-term holders may be waiting for a significant price increase before selling, although the current market activity remains bearish for Bitcoin.