Bitcoin experienced a notable decline on Tuesday, retreating to the $91,000 range after a brief rise above $94,000 the previous day. Despite some positive indicators for demand, recent data indicated significant selling pressure near critical resistance levels.
The dip followed an unsuccessful attempt to surpass the $94,000 to $95,000 corridor, where close to $100 million in sell orders were detected on major exchanges. This concentration of sell orders effectively capped Bitcoin’s rally, prompting traders to take profits and leading to a rapid return to lower levels.
The $91,000 area has emerged as a significant entry point for new buyers who entered the market in early 2025. These investors appeared to be capitalizing on recent volatility by booking short-term profits. Analysis using order book heatmaps revealed that sellers were absorbing buying pressure as Bitcoin approached this price level. As the upward momentum waned, leveraged traders began to exit their positions, further accelerating the decline towards $91,000. This price movement reflected the market’s structural dynamics rather than an abrupt shift in sentiment.
Despite the pullback, on-chain analytics and market flow indicators suggest the overall trend for Bitcoin remains promising. Data from CryptoQuant indicates an uptick in the Bitcoin-to-stablecoin reserve ratio on Binance, signaling an increase in buying power sitting on the sidelines. This increment can suggest the potential for new buying activity, typically occurring during pullbacks rather than in breakout scenarios.
Additionally, institutional demand appears to be robust. Recent figures show that Bitcoin exchange-traded funds (ETFs) recorded approximately $697 million in net inflows on January 5, bringing cumulative inflows close to $58 billion. This strong ETF activity continued even as Bitcoin faced resistance around the $94,000 mark, hinting at a focus on long-term positioning rather than speculative trading.
The disparity between significant ETF inflows and the short-term price weakness underscores a growing divergence in market behavior. While long-term buyers remain active, short-term traders tend to respond more to immediate technical signals and liquidity concentrations. This environment potentially explains why Bitcoin was unable to maintain its gains above $94,000 without triggering widespread panic selling.
Currently, the data suggests that the market may be entering a consolidation phase rather than gearing up for a reversal. To clear the $95,000 threshold, a combination of sustained spot demand, reduced selling pressure, and positive trends across risk markets will likely be necessary. Until that occurs, fluctuations within the low $90,000 range seem to be indicative of a market reflecting on its recent achievements.
