Bitcoin Attempts Recovery After Easing Institutional Selling Pressure

Bitcoin has rebounded above the $90,000 mark after intense selling pressure, but concerns about a bear market persist. Investors are still coming to terms with the sharp decline from October's all-time high, and confidence remains shaky.

  • The Coinbase Premium Index is negative, indicating institutional investors are selling more aggressively than retail traders. This continues to weigh on market sentiment.
  • Spot ETF outflows have contributed to ongoing sell-side pressure, although recent price movements suggest a temporary momentum shift.

Institutional Selling Pressure Eases

  • Since November 21, institutional selling has decreased. The Coinbase Premium Index shows less negative pressure, suggesting institutions are easing their sell-off.
  • This could stabilize the market if the trend continues, though analysts remain cautious as Bitcoin must show sustained demand to avoid further declines.

Bitcoin Faces Key Resistance Levels

  • BTC has attempted a recovery, bouncing from the 200-day moving average near $91,000. However, it remains below the 50-day and 100-day moving averages, indicating short-term weakness.
  • High selling volume compared to buying suggests the recent bounce may be temporary rather than a full reversal.
  • If BTC maintains its higher low structure and closes above the 200-day MA, bullish momentum might slowly return.

BTC testing key level | Source: BTCUSDT chart on TradingView