Bitcoin regains price of 97,000 after selling pressure from old whales

Bitcoin (BTC) rose 3% in the past 24 hours to a monthly high of $97,822, after trading below the $95,000 level for more than a week, according to . crypto slate data.

At the time of writing, the leading cryptocurrency was trading at $97,029.

The rally comes even as the old whale continues to realize gains, which has led to significant selling pressure in recent weeks. highlighted By Ki Young Ju, CEO and Founder of CryptoQuant.

Ki explained that while foreign exchange deposits have increased, over-the-counter trading desks have recorded a large amount of negotiations. These are common signs of short-term negative price movements. But he doesn’t think these market movements are enough to cause a crash.

According to Ki,

“Coinbase is seeing buying pressure primarily from US institutions, but daily premiums are at a two-year low. Recovery is needed for the next step up.”

After hitting an all-time high above the $108,000 price benchmark on December 17th, BTC began a retracement and stopped at $91,816.86 on December 30th. Since then, Bitcoin has been slowly recovering towards the $100,000 zone.

The move is expected for a trader identified as Rekt Capital. In late December, he pointed out Bitcoin typically faces a retrace between seven and nine weeks after entering the price discovery zone.

Recently, he highlighted Week 9 is slowly coming to an end, which could allow BTC to regain upward momentum based on the previous price cycle. The trader explained:

“BTC offers more evidence of further downside than reason to be bullish at the moment. The opposite is true.”

Cooling off period

CryptoQuant community analyst Avocado_onchain also believes that the current correction is a “cooling off” period and that the crypto market is still in the midst of a bull market.

in recent analysisreassured investors that based on on-chain data, another six-month adjustment period is unlikely.

The 7-day simple moving average (7-SMA) of Adjusted Spend Return (SOPR) is above 1 point but is trending down. This move suggests that profits for market participants will decrease.

The analyst added:

“Historically, when SOPR falls below 1, Bitcoin often rallies as selling at a loss causes a reversal, which is common in bull market patterns.”

Additionally, the Miner Position Index (MPI) analyzed with a 7-day SMA reveals that miners are not making large-scale transfers to exchanges. This points to a pattern of large mining companies holding on to their holdings despite periodic sales moves to cover operating costs.

Derivative funding rates have also declined, and BTC has frequently rebounded from sharp declines in this indicator. The analyst explained that a further rebound could occur if funding rates continue to fall, followed by bearish sentiment.

Finally, Avocado_onchain mentioned the total network fees and its 7-SMA. This indicates a decrease in activity and a potential cooling phase. As a result, the feeling of overheating caused by recent record highs is starting to subside.

On-chain data suggests that the macro uptrend is still occurring, but analysts suggested caution as short-term price movements are still unpredictable.

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