Bitcoin price market trajectory continues to attract scrutiny as whale activity and bearish predictions stir uncertainty. A whale has deposited 778 BTC ($72 million) into Kraken. Adding to a total of 3,038 BTC ($286 million) moved since December 20.
Whale Movements Fuel Bearish Concerns
Recent whale activities have raised concerns on the rising selling pressure. Large amounts of Bitcoin being sent to exchanges are usually indicative of selling, which can further depress prices, especially in a bear market.
This activity has led to the price of Bitcoin being at around $92,000 with $94,000 acting as a resistance point.
The implications do not stop at price action. Whale movement can lead to market manipulation, with large traders provoking panic among small Investors. In such situations, fear, uncertainty, and doubt (FUD) always run rife, causing much volatility.
Additionally, short-term volatility makes new investors stay away, due to the lack of certainty in the value of Bitcoin.
Bitcoin’s RSI Signals Mixed Outlook
Short-term oscillators such as the Relative Strength Index (RSI) are still flashing conflicting signals for BTC. As pointed out by analyst Ali, bear markets in Bitcoin have always started when the monthly RSI is at 92.
In the past, Bitcoin price rallies occur at RSI Levels of 80-92 and are followed by a steep drop, leading to corrections. Nevertheless, staying below overbought territory, a further RSI reduction might result in a pullback towards $85,000–$90,000 support levels.
On the other hand, if RSI moves upward, of course, Bitcoin could retest the psychological level of $100,000 which will be a major level.
Price Consolidates Amid Heightened Volume
In the past day, Bitcoin’s price fluctuated mildly between $91,271 and $94,590. The price drop of 0.75% has taken Bitcoin down to $92,695.Trading volume has increased by 54.30% to $54.81 billion, which also points to an increase in activities despite the declines.
Market conditions are still fairly conservative, as evidenced by red areas of the chart, which may be a result of profit taking. The price has been given temporary support near $92,700 as buyer interest at lower levels has stabilized.
Nevertheless, the bearish pressure is still persistently visible near $94,000 which prevents the market from going higher and makes it prone to falling again.
Current Economic Issues and Risk of Recession
There are other macroeconomic factors that could also affect the future of Bitcoin. Marko Bjegovic of Arkomina Research said that another potential recession in 2025 could worsen the bearish scenario for Bitcoin.
Previous occurrences indicate that Bitcoin dropped by almost 75% between late 2021 and 2022 during the onset of a recession.
If a recession hits then, the value of Bitcoin may fall even more, and some analysts believe the losses could be in excess of 90%. Such scenarios show that the asset is exposed to macroeconomic risks or policy mistakes by organizations such as the Federal Reserve.
What next for Bitcoin price?
In the short term, the price of Bitcoin will mostly be determined by the levels of support it will be able to hold. Continued trade above $92,000 may open the door to a move back toward $94,000 or even higher, with $95,000 acting as a psychological level.
On the downside, if the price falls below $92,000 it may fall towards $91,000 or even towards $90,000 which will increase the bearish pressure.
Source: https://www.thecoinrepublic.com/2025/01/01/bitcoin-price-faces-bearish-pressure-as-whales-move-286m-to-exchanges/