Bitcoin's Resilience Tested: Selling Pressure Mounts, But Price Holds Near $100K

Bitcoin has demonstrated remarkable resilience, maintaining its position above $95,000 despite one of the largest selling events since the 2022 collapse of crypto hedge fund Three Arrows Capital (3AC). According to André Dragosch, head of research at Bitwise Europe, recent market data indicates that spot exchanges experienced their highest selling pressure since 3AC's meltdown. However, Bitcoin's price still hovers near the $100,000 mark, hinting at what Dragosch calls "seller exhaustion."

Back in 2022, 3AC's downfall triggered a wave of liquidations, taking down several major crypto lenders like BlockFi and Celsius. Yet, despite similar pressures today, Bitcoin remains resilient—an encouraging sign for investors eyeing stability in uncertain markets.

Trade war tensions are rearing their head again, with the U.S. and China ramping up tariffs. These geopolitical concerns are weighing on market sentiment, making Bitcoin's key $93,000 support level a key threshold. Ryan Lee, chief analyst at Bitget Research, warned that a drop below this level could result in over $1.7 billion in leveraged positions being liquidated, leading to further downside to $91,500 or even lower.

The market isn't out of the woods yet. Popular trader CrypNuevo pointed out that Bitcoin price action is hovering within a three-month trading range and could swing suddenly due to thin liquidity. Upcoming U.S. Consumer Price Index (CPI) data and testimony from Federal Reserve Chair Jerome Powell are expected to stir the pot this week.

Meanwhile, Fed policy remains a wildcard. The Kobeissi Letter highlighted that the U.S. Reverse Repo Facility (RRP) has dropped to its lowest level since early 2021. This could be a potential signal that the Fed's quantitative tightening measures might be nearing an end. Moreover, this could trigger a liquidity shock that might significantly impact Bitcoin's price.

Investor behavior paints a fascinating picture. Retail investors—those holding less than 1 Bitcoin—are on a buying spree. They have been accumulating Bitcoin at a pace 72% faster than last year's average, according to on-chain analytics firm Glassnode. In contrast, whales, or large holders, have