Bitcoin (BTC) is showing renewed bearish momentum, with recent price dips testing critical support levels. Traders and investors are watching closely for signs of a potential major market bottom.
After reaching a high of $130,000 in early January 2026, Bitcoin has retreated to around $82,453, reflecting active selling from large holders. Observing daily and weekly charts, this decline coincides with a significant $8.8 billion options expiry, suggesting potential short-term liquidity sweeps. On-chain metrics and historical cycle patterns provide data-driven insights for those tracking BTC’s price trajectory.
Bitcoin Faces Persistent Bearish Pressure
Since August 2025, Bitcoin’s daily and weekly charts have repeatedly failed to reclaim the $88,000–$89,000 zone. Each attempted breakout from the descending resistance line ended in rejection, accompanied by rising sell volumes on the order book.
BTC remains bearish after losing $88K support, targeting $84,500–$83,000 unless it reclaims $88,500–$89,000. Source: Elise-Golden-Spar on TradingView
Options expiry events, such as the recent $8.8 billion expiration, historically trigger temporary dips as leveraged positions are liquidated. In this context, the price drop to $82,453 aligns with patterns observed in previous cycles. Notably, daily trading volume surged 18% during the dip, indicating heightened market activity and confirming the bearish momentum.
Support Levels and Short-Term Forecast
Bitcoin’s immediate support currently lies between $83,000 and $85,000, based on high-volume nodes observed on the BTC/USD volume profile. Lower liquidity areas below $83,000 could accelerate downward moves if breached.
BTC stays bearish below key resistance, with risk toward $85K–$80K amid tight liquidity and cautious institutions. Source: DeGRAM on TradingView
If Bitcoin reclaims $88,500 and sustains that level for multiple daily closes, short-term bearish momentum could weaken, opening a potential rebound window. Conversely, failure to hold above this zone may lead to further liquidity sweeps targeting $80,000–$78,000, consistent with prior cycle lows.
A clear approach to these levels helps short-term traders and long-term investors differentiate between opportunistic accumulation zones and areas of elevated risk.
Bitcoin On-Chain Signals Highlight Whale Distribution
Glassnode’s Accumulation Trend Score, which measures net on-chain accumulation by large Bitcoin holders, dropped to 0.2 as of January 29, 2026, well below the 0.5 threshold indicating accumulation. This metric, observed over the past 30 days, confirms that whales are actively taking profits after BTC’s rally from $90,000 to $130,000.
Glassnode’s score at 0.2 signals whale selling as BTC drops to $90K, while 62% bullish sentiment hints at retail buying opportunities. Source: Ali Martinez via X
Ali Charts, a market analyst specializing in on-chain data, noted:
“Despite whale selling, overall crypto sentiment remains 62% bullish, highlighting a divergence that may create retail accumulation opportunities once large holders exhaust supply.”
This dynamic illustrates the tension between institutional profit-taking and retail interest—a pattern historically preceding major cycle bottoms.
Historical Patterns Suggest Sweeping Lows May Precede a Bottom
Analysis of Bitcoin cycles from 2023–2025 shows that major bottoms often followed brief sweeps below prior support levels, clearing liquidity and triggering stop-loss cascades. Notable examples include lows near $30,000 in 2023 and $50,000 in 2024.
BTC dipped to $82,453 on Jan 30, 2026, during an $8.8B options expiry, with traders targeting $78K–$80K for a potential final sweep. Source: Jelle via X
Crypto analyst Jelle (@CryptoJelleNL) observed:
“Almost every major bottom this cycle happened with a sweep of the lows. Time to find out if this is another one of those times.”
The recent dip to $82,453 fits this pattern. Daily order books show layered buy bids between $78,000 and $80,000, suggesting market participants anticipate a possible final liquidity sweep before upward momentum resumes.
BTC Market Sentiment and Broader Context
Global financial conditions, including tight liquidity and cautious institutional positioning, continue to limit Bitcoin’s upside potential. Meanwhile, retail engagement remains steady, with sentiment indices indicating roughly 62% bullish participation across major crypto communities.
It is worth noting that not every sweep of lows historically resulted in a sustained bottom. Periods of extended consolidation or continued downside are possible, underscoring the importance of actively monitoring resistance and support zones.
Looking Ahead: Bitcoin Price Outlook
Bitcoin currently shows short-term bearish momentum, supported by on-chain metrics and historical patterns. For traders and investors:
Bitcoin was trading at around $82,559.653, down 6.10% in the last 24 hours at press time. Source: Bitcoin price via Brave New Coin
- Resistance to watch: $88,500–$89,000 (daily closes above this level may signal weakening bearish pressure)
- Support to watch: $83,000–$85,000 (critical for liquidity absorption)
- Potential accumulation zones: $78,000–$80,000, where buy orders cluster
The interplay between whale distribution and retail accumulation could define Bitcoin’s next significant move. While sweeping lows may suggest a potential major bottom, careful observation of price behavior around these levels is essential for both short-term trading and long-term investment strategies.