Bitcoin and altcoins experienced a major crash last Friday. During this crash, BTC fell to $102,000 before recovering to $115,000 at the beginning of the week.
However, as the selling pressure on Bitcoin continued, the price retreated towards $110,000.
While some analysts predict that the price is at risk of further decline amid ongoing selling pressure, one analyst said that BTC sales are limited to a small group of investors.
According to The Block, Timothy Misir, head of research at BRN Research, said that the selling pressure in Bitcoin is limited to a small group of investors rather than a general market trend.
Analyst Misir noted that BTC is retesting the $110,000 level as whales reduce their positions and demand for put options increases.
However, the analyst noted that put options accounted for only 28% of total options trading, with demand for call options between $115,000 and $130,000 still dominating put positions.
Bitcoin is testing a critical base at $110,000 as whales reduce their positions and sell.
While put positions exceed $1.15 billion, accounting for 28% of trading flow, long positions remain concentrated around the $115,000-$130,000 level. And put positions continue to dominate puts.
This suggests that the sell-off is not a general market trend, but rather limited to a small group of investors and is temporary.”
Bitcoin’s Short-Term Decline Risk Continues!
21 Shares analyst Matt Mena also noted that despite the short-term weakness in Bitcoin, institutional demand remains strong.
Mena noted that spot ETF inflows and the Fed’s moderate monetary policy stance are supporting Bitcoin, predicting that BTC could rally towards $150,000 if institutional demand continues.
However, Mena warned investors that a short-term decline is possible. He noted that a strong break below $110,000 could see Bitcoin’s price drop to $104,000-$108,000. Conversely, a recovery above $115,000 would likely restart upward momentum.
Bitwise CIO Matt Hougan also commented that the crash was merely a market reset rather than a downtrend.
*This is not investment advice.