Analysis: The crypto market structure has improved, but selling pressure remains.
PANews reported on January 19th that a recent report from Bitfinex Alpha indicates that the Bitcoin market structure has recently improved, but supply pressure from long-term holders remains. Last week, Bitcoin briefly broke through the $94,000-$95,000 resistance zone, driven by strong spot demand, reaching a more than two-month high of $97,850. This move triggered the largest single-day short liquidation in nearly 100 days. Although the price has retreated about 6% from its high, the market structure has clearly improved, having recovered its 2025 opening price and risen more than 21% from recent lows.
Bitcoin is currently entering a dense supply zone of long-term holders between approximately $93,000 and $110,000, where previous rallies have been repeatedly capped. While long-term holders are still net sellers, the pace of selling has slowed significantly from over 100,000 BTC per week at cyclical peaks to approximately 12,800 BTC per week. This easing, combined with first-quarter seasonal support and stronger-than-usual order flow dynamics, increases the likelihood that the market will absorb the supply above. The report also points out that recent economic data indicates an increasingly complex global macroeconomic and financial backdrop, with persistent inflationary pressures, uneven consumer resilience, and stricter regulations.
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