Jan 18, 2026
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Bitcoin Faces Potential Downturn as Large Inflows Signal Investor Distribution
Bitcoin's Resistance and Potential Distribution Risks
- Bitcoin failed to surpass the $97,000 resistance level after a mid-January price surge.
- The cryptocurrency is currently in a state of inertia, with minimal movement.
- Recent on-chain data suggests potential distribution risks for Bitcoin.
Exchange Inflows Indicate Possible Distribution
- CryptoZeno, a key opinion leader, highlights increased Bitcoin inflows into exchanges.
- Surges in exchange inflows are seen as indicators that investors might be preparing to distribute BTC holdings.
- This trend typically follows strong BTC price advances, leading to potential sell-side pressure.
- Large inflows often precede periods of heightened volatility or corrective price action.
Main Contributors to Exchange Inflows
- Mid-to-large size bands (10-100 BTC, 100-1,000 BTC) are major contributors to the recent inflow spike.
- These bands are associated with whales and long-term investors, who act strategically.
- Simultaneous large investor activity and high exchange inflows suggest a fragile market phase.
- If high inflows persist while prices stagnate, Bitcoin could face supply over demand issues.
Current Bitcoin price: $95,250 with negligible growth from the previous day.
