Bitcoin has recently encountered a period of selling pressure after turning down from its overhead resistan…

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Bitcoin has recently encountered a period of selling pressure after turning down from its overhead resistance levels. Market analysis indicates that while the cryptocurrency experienced a reversal, it is widely expected to find significant support at its moving averages. Specifically, Bitcoin turned down from a price point of $94,789 on Monday, suggesting that bears are currently attempting to maintain the asset’s price within a consolidated range. In the immediate term, the pullback is anticipated to find a base at the 20-day exponential moving average, which is currently identified at $90,022. This technical cooling off follows a shift in institutional activity, as Bitcoin exchange-traded funds (ETFs) recorded outflows of $243.2 million on Tuesday.

This recent outflow provides a contrast to the start of the year, when these financial products attracted $1.16 billion in inflows during the first two trading days. Despite the recorded outflows, on-chain data suggests a level of resilience among larger market participants. Since mid-December, whales and sharks have accumulated a total of 56,227 BTC. This accumulation by high-volume stakeholders often indicates a long-term confidence that diverges from the caution seen in small retail wallets. If the price manages to rebound off the moving averages with sufficient strength, it could signal a continuation of the recovery phase. However, the current market climate shows that select major altcoins are also facing selling pressure near their own resistance levels, creating a complex environment for traders navigating these support and resistance zones.

Context

The broader context of Bitcoin’s price action is defined by a combination of institutional flow volatility and consistent accumulation by large-scale holders. The $243.2 million in ETF outflows on Tuesday serves as a signal of caution at higher price levels, especially following the significant $1.16 billion in inflows that marked the beginning of the new year. This shift highlights a momentary pause in the aggressive buying seen in the institutional sector. Nevertheless, the fact that whales and sharks have added 56,227 BTC to their holdings since mid-December provides a bullish backdrop. These stakeholders represent a segment of the market that typically influences long-term trends, often moving in the opposite direction of smaller retail participants.

Further supporting the optimistic outlook is the perspective offered by Bill Miller IV. Speaking on CNBC, the Miller Value Partners chief investment officer observed that Bitcoin is currently establishing a higher base than it did during the spring of 2025. Based on this observation, he expects that Bitcoin will eventually break out to a higher high, potentially surpassing the all-time high established during the fall. This macro view suggests that the current technical pullback to the 20-day exponential moving average of $90,022 may be a foundational step toward a more significant upward move. While the rejection from the $94,789 level on Monday indicates bear activity, the underlying accumulation metrics and the establishment of a higher price floor suggest that the market structure remains favorable for those looking at the medium-term horizon.

Impact

The impact of the current market rejection is visible across the technical charts of major cryptocurrencies. For Bitcoin, the failure to sustain levels above $94,789 has shifted the focus to the 20-day exponential moving average at $90,022. A rebound from this support would maintain the bullish structure, but a break lower could result in a longer period of range-bound trading. In the altcoin market, the consequences are equally distinct. Ether, for instance, broke above the resistance line of a symmetrical triangle pattern on Tuesday, yet the bulls were unable to maintain this momentum. This led to a re-entry into the triangle, with Ether now seeking support at its own moving averages. If it fails to hold these levels, the price could plummet toward $2,623 or even $2,111, potentially signaling a bull trap.

Similarly, XRP reached the downtrend line of a descending channel pattern on Tuesday, which is currently acting as a stiff resistance point. The ability of XRP to close above this downtrend line is critical for signaling a short-term trend change. Meanwhile, BNB is facing its own battle as sellers attempt to halt its recovery at the $928 level. A close above this price point would be significant, as it would complete a bullish ascending triangle pattern. Conversely, if the recovery is halted and the price breaks below its moving averages, BNB could be forced into a volatile swing between $790 and $928 for an extended duration. These technical developments illustrate how the initial rejection of Bitcoin has set off a chain reaction of tests at critical support levels for various major digital assets.

Outlook

Looking ahead, the market’s direction will be determined by its ability to convert current support levels into a launchpad for the next leg up. If Bitcoin rebounds off its 20-day exponential moving average with force, the possibility of a break above the $94,589 resistance increases significantly. Such a move would likely lead the BTC/USDT pair to the psychological level of $100,000, with a subsequent target of $107,500. This aligns with the “higher high” expectations set by analysts like Bill Miller IV. On the other hand, if sellers manage to sink the price below the moving averages, it would suggest that the bulls have lost immediate control and that the asset may remain within its current range for longer than anticipated.

The outlook for altcoins is similarly tied to these technical thresholds. For Ether, a rebound off the moving averages could see the pair soar to $3,659 and eventually target the $4,000 level. For XRP, achieving a close above the descending channel’s downtrend line would open the door for a climb toward $2.70. In the case of BNB, the target objective is $1,066, provided it can achieve a close above the $928 resistance. However, the 20-day EMA at $877 remains the crucial support to watch; a failure here could lead to a drop toward the $790 level. Overall, the market remains in a state of watchful waiting as it balances the recent $243.2 million in ETF outflows against the 56,227 BTC accumulated by whales since mid-December. The resolution of these price battles at the moving averages will dictate the trend for the coming weeks.