Bitcoin steadied near the $90,000 mark after a sharp early-week sell-off, as on-chain metrics flashed mixed signals between renewed accumulation and late-stage profit-taking.
Market slides, liquidations surge, then stabilization
Bitcoin fell by about 6% on Monday, marking its largest one-day percentage drop since early November, as risk aversion hit digital assets. The decline followed a weak monthly close for November and was accompanied by heavy selling across majors, including ether. Nearly $1 billion in leveraged crypto positions were liquidated during the drawdown, adding momentum to the sell-off.
BTC subsequently rebounded above $88,000 and is testing resistance around $89,500–$90,000. The broader market backdrop remained fragile after reports of a security exploit at Yearn Finance weighed on sentiment and several large-cap altcoins posted declines.
On-chain signals: hidden buying meets profit-taking
Beneath the surface, on-chain indicators offered a contrasting picture. According to On-Chain Mind, Bitcoin is “printing the largest hidden-buying spike of the entire cycle,” suggesting stealth accumulation despite the volatility.
At the same time, on-chain data show significant distribution near $90,000. Analysts flagged that roughly 63,000 BTC shifted from long-term to short-term holders, a move consistent with late-stage profit realization. Analyst Darkfost noted that the amount of BTC in profit sent to exchanges by short-term holders remains relatively low at around 9,500 BTC, though it ticked higher as the price reclaimed $90,000. A report from BeInCrypto also observed rising exchange selling pressure as BTC pushed back above $90,000.
Key levels and technical context
Price action remains range-bound in the low-$90,000 area, with resistance clustered near $89,500–$90,000. Some chartists warn that a loss of the $80,000 support could open the door to deeper downside, with bearish projections extending toward $48,000 in a worst-case scenario. Others point to a potential hidden bullish divergence on the weekly Relative Strength Index, suggesting selling momentum may be fading, according to analyst Ash Crypto.
Demand cools as ETF accumulation slows
Demand indicators have softened. Researchers at CryptoQuant said this week that the market is “highly likely to have seen most of this cycle’s demand wave pass,” noting that spot Bitcoin ETF accumulation has slowed to one of its weakest paces since those products launched.
For now, Bitcoin trades with reduced volatility compared with last week’s swings, as traders watch whether a decisive break above $90,000 can restore upward momentum or if the market retests lower support.