- The price of Bitcoin opened trading at $94,800 on Tuesday, the lowest level since November 27.
- The average transaction size on the Bitcoin network hit a two-year high of $306,101 on December 22, signaling a major sell-off by large investors.
- The Bull Bear Power indicator indicates continued downside risks, with bears dominating market momentum for six consecutive days.
Bitcoin price opened trading below the $95,000 level on Tuesday, marking its lowest level since November 27. Data trends in the chain show increasing pressure from large investors on the sell side. Is BTC in danger of falling below $90,000?
Bitcoin Falls Below $95,000 Despite MicroStrategy Purchase
The following harsh statements by the Federal Reserve of the United States (Fed) after the decision to cut interest rates on December 17 caused bearish reactions in the crypto markets.
While altcoins saw a significant recovery over the weekend, BTC continued to languish in bearish territory.
Bitcoin Prices | BTCUSDT (Binance)
Bitcoin’s lackluster price performance came amid another $516 million BTC purchase from MicroStrategy, announced on Monday.
The chart above shows how the price of BTC opened trading at $94.881 on Tuesday, bringing losses over the seven-day time frame to 12.4%.
Moreover, the Japanese investment company Metaplanet Inc. also announced the purchase of an additional 619.7 Bitcoins for approximately $58.9 million.
Bitcoin’s further decline despite two major buying announcements from MicroStrategy and Metaplanet signals increased selling pressure among other large investors.
Bitcoin whale activity has reached a two-year high amid a market downturn
Large corporate investors are rebalancing their positions after the Fed’s hawkish guidance for the first quarter of 2025.
As a result, the 12% drop in the price of Bitcoin over the past seven days has coincided with significant whale activity.
Recent on-chain data trends reveal a significant increase in the average value of Bitcoin transactions during this market downturn.
Bitcoin Average Transaction Size vs BTC Price | Source: IntoTheBlock
As reported by IntoTheBlock, the average transaction size for Bitcoin reached $306,100 on Monday, marking the highest level since November 2022.
Historically, spikes in transaction sizes during market downturns have been associated with increased selling among whales, contributing to increased downward pressure on the market.
This behavior could extend the bearish trend if it continues, as larger trades often affect overall market sentiment and liquidity.
Without a corresponding increase in demand, this could lead to further price corrections in the short term.
Bitcoin Price Forecast: $90,000 Support Threatened?
Bitcoin’s price action hints at further declines as it struggles to recover from the recent market decline.
On Monday, the average transaction size on the Bitcoin network rose to $306,101, marking a two-year high.
This reflects increased whale activity, possibly indicating a large-scale sell-off.
Bitcoin is currently trading near the bottom of the Donchian channels at $90,500, which is a key support level.
A break below this level could increase selling pressure, with the next critical support at $88,000.
Bitcoin Price Forecast | BTCUSDT
Bearish dominance is further supported by the Bull Bear Power (BBP) indicator, which has remained in negative territory for six consecutive days.
Resistance lies at $99,426, the middle line of the Donchian channels.
A break above this level could signal a bullish recovery, opening the door for a potential test of the upper resistance at $108,353.
For now, Bitcoin’s immediate future depends on its ability to hold above $90,500.
A close below this level could confirm bearish forecasts, while a sustained move above $99,426 could reverse the current downtrend, signaling the start of a recovery
