Bitcoin fell back to the $91,000 zone on Tuesday after being above $94,000 the previous day.
New data showed strong selling pressure near key resistance levels despite improved underlying demand indicators.
Large sell orders stopped the Bitcoin rally near $95,000
The decline came after a failed attempt to rise above the $94,000–$95,000 range, where order data showed nearly $100 million in sell orders accumulated on major exchanges.
The level of liquidity acted as a ceiling, halted the rise, and triggered short-term profit-taking.
The $91,000 zone for Bitcoin is an entry point for a large volume of new buyers who entered the market early in 2025. It appears these buyers are taking short-term profits today after the recent volatility.
Order book heatmaps showed sellers absorbing buying pressure as Bitcoin entered the area.
When the rally stalled, traders with long positions pulled out of positions, amplifying the drop toward $91,000. The move reflected market structure, not a sudden shift in sentiment.
A price reversal remains possible
Despite the decline, on-chain and flow data suggest the broader trend remains positive.
Data from CryptoQuant show that the ratio between Bitcoin and stablecoin reserves on Binance has begun rising again, signaling increased buying power on the sidelines.
A higher ratio indicates traders are holding stablecoins and waiting for favorable entry points, typically deploying capital during pullbacks rather than chasing rallies.
This gradual buildup of liquidity often precedes consolidation phases, where price fluctuates within a range before a new directional move. It typically does not support a sudden, vertical rise in the short term.
Institutional demand remains strong as well. Spot Bitcoin ETFs recorded approximately $697 million in net inflows on January 5th, bringing total inflows close to $58 billion.
It's important to note that these inflows continued even as Bitcoin struggled near resistance, suggesting long-term positions rather than speculative momentum driving demand.
The contrast between strong ETF inflows and short-term price weakness highlights an increasing divergence in the market.
Long-term buyers continue to accumulate, while short-term traders react to technical levels and liquidity clusters. This dynamic explains why Bitcoin failed to hold above $94,000 without triggering broad panic selling.
There was no sign of significant inflow into exchanges or aggressive distribution from long-term holders in connection with the drop.
So far, the data point more toward consolidation rather than a reversal. Breaking the $95,000 level will likely require sustained spot demand, lower selling liquidity, and support from other risk markets.
Until then, the pullback toward the lower end of the $90,000 range appears to be a natural phase where the market digests recent gains.