Bitcoin Flat at $89,000, but Charts Warn Buyers Are Losing Ground

Bitcoin (BTC) remains flat near $89,000 as technical indicators and on-chain data suggest weakening buyer support. Over the past 24 hours, the price has shown minimal movement, masking a growing risk of a potential breakdown. Weekly losses remain near 6%, indicating underlying bearish pressure despite the current consolidation.

Technical indicators show buyers are now in a defensive position. Over the past three daily sessions, BTC has printed doji-like candles, with thin bodies and long wicks. These signals reflect hesitation and a lack of control from buyers, as sellers continue to push downward.

Buyer strength is also declining. Long-term holders, who have historically provided support, are reducing their net buying. On January 19, these holders added 22,618 BTC to their wallets. By January 23, that number had dropped to 17,109 BTC, a 24% decline in four days.

Miner selling pressure is rising as their revenue declines. Miners have increased their net selling from 335 BTC on January 9 to 2,826 BTC on January 23. This eightfold increase in selling pressure coincides with a 70% drop in Bitcoin's monthly network fees.

Bitcoin ETFs are also experiencing outflows. According to SoSoValue data, Bitcoin spot ETFs recorded outflows of $709 million on Wednesday, bringing total outflows for the week to $1.19 billion. This trend continues to weigh on the broader crypto market.

Why Is Buyer Support Fading?

The decline in buyer support is linked to weakening confidence and rising selling pressure. On-chain metrics such as Holder Net Position Change show a slowing pace of accumulation by long-term holders. This reduction suggests a shift in investor sentiment, with fewer buyers willing to step in at current price levels.

Miners are also playing a key role in the current bearish trend. As network fees decline, miners are selling more Bitcoin to cover operating costs. This increase in supply is likely contributing to the downward pressure on price.

What Are Analysts Watching Next?

Analysts are closely monitoring key price levels and technical indicators. Bitcoin is currently trading near $89,500, and a daily close above $91,000 would be needed to reclaim the 20-day EMA, a critical trend indicator. A close below $88,500 could trigger a breakdown under the rising wedge, potentially pushing the price toward $77,300.

Ethereum and XRP are also under pressure, with Ethereum ETFs experiencing outflows of $287 million on Wednesday. XRP ETFs saw smaller outflows, but retail interest remains subdued.

Investor inflows into major ETFs are mixed. While Bitcoin and Ethereum ETFs experienced net inflows last week, the trend has weakened. BlackRock's iShares Bitcoin Trust (IBIT) led the weekly inflows with $1.035 billion, but some funds, such as Grayscale's Bitcoin Trust (GBTC), saw outflows.

Overall, the market is at a critical juncture. While current buyers are attempting to delay a larger breakdown, the signs of weakening support suggest that a more significant correction could be on the horizon.