Bitcoin Stabilizes Near $89K While Whales, Dolphins, and U.S. Investors Reduce Exposure

Bitcoin is consolidating around the $89,000 to $90,000 range as on-chain data reveals significant distribution activity from major market participants. The leading cryptocurrency trades at $89,380.34, posting a modest 0.23% gain over 24 hours but remaining down 6.12% for the week.

Four key indicators are converging to paint a bearish picture, according to CryptoQuant analyst EgyAsh. U.S. institutional demand remains weak while overall demand has turned negative. Both Dolphins and Whales have entered distribution phases, actively reducing their holdings.

The price decline has pushed Bitcoin to a 15.23% decrease over the past year. Market observers are closely monitoring whether current support levels will hold amid the selling pressure from large holders.

Bitcoin Whales and Dolphins Shift to Distribution as Demand Turns Negative

The Bitcoin Apparent Demand chart reveals a stark transition from the high-demand green period of mid-2025 to sustained negative demand in January 2026. Long-term holders are distributing coins faster than the market can absorb them.

Whale addresses holding between 1,000 and 10,000 BTC accumulated heavily throughout 2024 and early 2025. However, the one-year change in their holdings has now turned negative. Historically, such shifts signal that the largest market participants are exiting positions.

Dolphin holdings follow a similar pattern. After aggressive accumulation during the 2025 rally, the 30-day percentage change has dipped into negative territory. These medium-to-large investors have shifted from holding to profit-taking.

The Coinbase Premium Index has been sitting in deep negative territory. U.S.-based investors and institutions are offloading positions or showing reduced appetite compared to global markets.

Bitcoin ETFs also recorded outflows. One-day net flow reached negative 433 BTC, valued at $38.53 million. The seven-day net flow stood at negative 18,050 BTC, totaling $1.61 billion in outflows, according to Lookonchain data.

Jan 23 Update:#Bitcoin ETFs:
1D NetFlow: -433 $BTC(-$38.53M)🔴
7D NetFlow: -18,050 $BTC(-$1.61B)🔴#Ethereum ETFs:
1D NetFlow: -22,174 $ETH(-$64.86M)🔴
7D NetFlow: -189,350 $ETH(-$553.85M)🔴#Solana ETFs:
1D NetFlow: +28,296 $SOL(+$3.57M)🟢
7D NetFlow: +87,508… pic.twitter.com/ofYljczXdO

— Lookonchain (@lookonchain) January 23, 2026

Bitcoin Analysts Watch $90,500 as Key Resistance Level

Analyst Rekt Capital noted that Bitcoin has successfully retested its higher low. The cryptocurrency is now contending with reclaiming the mid-range level around $90,500.

A weekly close above $90,500 would confirm the move as a volatile retest. Such confirmation would signal readiness to sustain price action in the upper weekly range between $90,500 and $93,500.

#BTC

Bitcoin has successfully retested both the Higher Low (purple) and is in real contention for reclaiming the Mid-Range of $90500 thus far

Weekly Close above $90500 would confirm that this was a volatile retest

More, it would confirm that BTC is ready to continue occupying… https://t.co/3fdDPIehN9 pic.twitter.com/ML3aUYytd7

— Rekt Capital (@rektcapital) January 23, 2026

CMC analyst Innovator of Afrika observed Bitcoin trading within an $88,000 to $92,000 range. Buyers are actively defending the lower boundary while resistance between $95,000 and $100,000 limits upside momentum.

Technical indicators including RSI and moving averages show neither overbought nor oversold conditions. The market appears to be awaiting a catalyst that could define the next major directional move.

BTC Chart Shows Bearish Structure With Key Support at $87,000

Bitcoin displays classic corrective behavior following rejection from the $120,000 psychological resistance in Q4 2025. The daily chart reveals a well-defined downtrend characterized by lower highs and lower lows.

The primary trend remains bearish with a clear structural breakdown from October 2025 highs. Price has formed a series of lower highs from $120,000 to $115,000, then $108,000, and finally $98,000.

Critical support sits at $87,000 to $88,000, marked by the lower Bollinger Band and multiple daily wick rejections. A break below this zone would likely trigger a cascade toward the $82,000 to $84,000 structural support.

Immediate resistance lies at $92,000 to $93,500, where the SMA(20) at $92,205 and EMA(9) at $90,763 create barriers. The 0.382 Fibonacci retracement at $96,500 represents the first meaningful recovery target.

All major moving averages point downward with price trading below the EMA(9), SMA(20), and middle Bollinger Band. The Bollinger Bands have contracted during late January consolidation, suggesting an imminent volatility expansion.

RSI readings in the neutral 40-50 range confirm market indecision. No bullish divergence has formed between price and RSI, meaning no early reversal signals exist currently.

The short-term outlook remains bearish to neutral. Bitcoin must reclaim and hold above $92,000 with volume to shift momentum. Until then, rallies may face selling pressure within the larger downtrend structure.