Bitcoin price faces bear pressure as whales move $286 million

The market trajectory of bitcoin prices continues to attract attention as whale activity and bearish predictions create uncertainty. Kit deposited 778 BTC ($72 million) into Kraken. Adding to the total of 3,038 BTC ($286 million) moved since December 20th.

Whale movements fuel bearish concerns

Recent whaling activity has raised concerns about mounting selling pressure. Large volumes of Bitcoin sent to exchanges usually indicate a sell-off, which can drive prices down further, especially in a bear market.

This activity has seen the price of Bitcoin hover around $92,000, with $94,000 acting as a resistance point.

The implications don’t stop at price action. Whale movements can lead to market manipulation, with large traders causing panic among retail investors. In such situations, fear, uncertainty and doubt (FUD) are always present, causing great volatility.

Additionally, short-term volatility keeps new investors away, due to the lack of certainty in Bitcoin’s value.

Bitcoin’s RSI signals a mixed outlook

Short-term oscillators such as the Relative Strength Index (RSI) are still flashing conflicting signals for BTC. As noted by analyst Ali, Bitcoin bear markets have always started when the monthly RSI is at 92.

In the past, Bitcoin price spikes have occurred at RSI levels of 80-92, followed by a steep decline, leading to corrections. Nevertheless, remaining below the overbought area, a further decline in the RSI could result in a pullback towards the $85,000-$90,000 support levels.

On the other hand, if the RSI moves up, of course, Bitcoin could retest the psychological level of $100,000, which will be a big level.

Price is consolidating amid increased volume

Over the past day, the price of Bitcoin fluctuated slightly between $91,271 and $94,590. A 0.75% price drop brought Bitcoin down to $92,695. Trading volume increased by 54.30% to USD 54.81 billion, also indicating an increase in activity despite the decline.

Market conditions are still quite conservative, as evidenced by the red areas of the chart, which may be the result of profit taking. The price found temporary support near $92,700 as buyer interest stabilized at lower levels.

Despite this, bearish pressure is still persistently visible near $94,000 which is preventing the market from growing and making it prone to further declines.

Current economic issues and the risk of recession

There are other macroeconomic factors that could also affect the future of Bitcoin. Arkomin Research’s Marko Bjegović said another potential recession in 2025 could worsen the bearish scenario for Bitcoin.

Previous events show that Bitcoin fell by almost 75% between the end of 2021 and 2022 during the beginning of the recession.

If a recession then hits, Bitcoin’s value could drop even further, with some analysts believing losses could exceed 90%. Such scenarios show that assets are exposed to macroeconomic risks or policy mistakes by organizations such as the Federal Reserve.

What next for the price of Bitcoin?

In the short term, the price of Bitcoin will be largely determined by the levels of support it will be able to hold. A continued trade above $92,000 could open the door to a pullback towards $94,000 or even higher, with $95,000 acting as a psychological level.

On the downside, if the price breaks below $92,000, it could fall towards $91,000 or even $90,000 which will increase the bearish pressure.