Bitcoin's recent surge towards the $100,000 psychological level has been halted by strong selling pressure, with key on-chain and exchange metrics indicating a significant shift in market dynamics. The rally, which saw BTC push above $97,000, was initially supported by a resurgence of institutional buying from U.S. investors, as signaled by the Coinbase Premium Gap flipping into positive territory. This metric, which tracks the price difference between Coinbase (USD) and Binance (USDT) pairs, turned green during the latest price leg, suggesting American institutional whales had resumed accumulation after a prolonged period of selling pressure.
However, this institutional support proved fleeting. As Bitcoin set a local high near $98,000, the Coinbase Premium Index rolled over and weakened, indicating that spot demand from larger U.S. buyers was exhausted. The subsequent price correction saw BTC retrace for two consecutive sessions, slipping below $95,000. Market analysis from firms like Material Indicators noted that bears "fought back hard," with key daily trend signals flipping bearish.
Further data reveals the rally was driven by aggressive, but unsustainable, buying. The cumulative volume delta (CVD) made higher highs while price formed a higher low, a divergence showing buyers were absorbing sell pressure but lacked the strength to push prices higher. Concurrently, the bid-ask ratio remained negative throughout the uptrend, meaning sell orders continued to outweigh bids—a sign buyers were lifting offers rather than building passive support.
Adding to the selling pressure, short-term holders (STHs) realized significant profits as the price approached their cost basis near $98,300. On January 15th, as BTC broke above $97,000, STHs sent over 40,000 BTC in profit to exchanges in a single day. This profit-taking behavior, following a similar move of 30,000 BTC at the $94,000 level, underscores a capital preservation mindset among recent buyers.
The rally also triggered a sharp liquidation event in the futures market. Analytics firm Glassnode highlighted that Bitcoin short liquidations peaked near $90 million when BTC first pushed into the $96,000 region. Following this flush, open interest fell alongside the price, indicating that leveraged positions were cleared and new long momentum failed to materialize.
