Bitcoin Slides to New Lows as Whale Sell Offs Intensify

With an opening price of $94,800 on Tuesday, the price of bitcoin fell to its lowest point since November 27. The average Bitcoin transaction size reached a 2-year high of $306,101 on December 22, signaling big sell-offs by whale investors.

With bears controlling market momentum for six days, the Bull bull-bear power indicator indicates that continued adverse risks are likely. On Tuesday, the price of bitcoin began trading below the $95,000 mark, its lowest point since November 27. Trends in on-chain data indicate that big investors are putting more pressure on the sell side. Could Bitcoin’s price drop below $90,000?

Crypto Markets Slip Despite Major Bitcoin Buys

Crypto markets have been experiencing unfavorable reactions to hawkish pronouncements by the United States Federal Reserve (Fed) following the interest rate drop decision on December 17. Bitcoin (BTC) has remained in bearish territory, whereas altcoins experienced a significant bounce over the weekend. Market movement for Bitcoin | BTCUSDT (Binance)

Even though MicroStrategy said on Monday that it will be purchasing an additional $516 million worth of Bitcoin, the cryptocurrency’s price performance has been disappointing. As you can see above, Bitcoin started trading at $94,881 on Tuesday, extending its losses over the past seven days to 12.4%.

Even more noteworthy is that Japanese investment firm Metaplanet Inc. declared the acquisition of an extra 619.7 Bitcoin for about $58.9 million. The fact that MicroStrategy and Metaplanet have both announced large-scale purchases of Bitcoin suggests that other large investors are putting more selling pressure on the market.

Bitcoin Drops 12% as Whale Activity Surges

Large corporate investors have been adjusting their portfolios following the Fed’s hawkish outlook for Q1 2025. The price of Bitcoin has dropped 12% in the last seven days, which has been accompanied by significant whale activity. According to recent on-chain data patterns, the average value of Bitcoin transactions spiked during this market collapse. Bitcoin Price as a Function of Average Transaction Size | Source: IntoTheBlock On Monday, the average Bitcoin transaction size hit $306,100, according to IntoTheBlock.

This is the most significant amount since November 2022. The market has a history of being under more downward pressure when there are surges in transaction sizes during market falls, which is linked to accelerated sell-offs among whales. Large trades generally affect market mood and liquidity, so the bearish one could last longer if this trend keeps up. More price Bitcoin Slides to New Lows be on the horizon if demand doesn’t increase at the same rate.

Bitcoin Faces Pressure Near Key Support Leve

Since it has been unable to recover from the market meltdown, Bitcoin’s price movement suggests it will continue to fall. The average transaction size on the Bitcoin network reached a two-year high of $306,101 on Monday. This reflects increased whale activity, which most likely indicates massive sales. At $90,500, a crucial support level, Bitcoin is trading close to the lower edge of the Donchian Channels.

Following this, $88,000 is the next significant support level; a lower break would increase selling pressure. Anticipation of Bitcoin Slides to New Lows | BTCUSDT Another bearish indicator in negative territory for six days is the Bull Bear Power (BBP). You will find resistance at $99,426—the Donchian Channels midpoint.

If prices break out above this level, it might signify a bullish recovery and a chance to target the upper resistance level of $108,353. Maintaining a price over $90,500 is the immediate goal for Bitcoin’s future. If prices close below $99,426 today, it might confirm pessimistic predictions, but if costs stay above $99,426 for an extended period, it might indicate the beginning of a rebound.

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