Bitcoin faces new selling pressure, with prices dropping below US$80,000 after a sharp correction. This decline comes after a general market weakening and an increase in risk-averse investor sentiment.
Although large wallet holders are reacting defensively, there are several underlying bullish signals indicating that Bitcoin may be preparing for a short-term recovery as selling pressure starts to show signs of exhaustion.
Large Bitcoin Holder Exits
On-chain data shows a significant reduction in risk among large Bitcoin holders throughout January. The number of wallets with balances over US$100,000 and US$1 million in BTC collectively decreased by about 166,000 addresses within two weeks. This group typically represents institutional players and high-net-worth investors, whose positions often have a large impact on liquidity and price movement direction.