Bitcoin Shows 'Seller Exhaustion' as BTC Price Action Hovers Near $100K Mark Amid Highest Selling Pressure Since 3AC Collapse

Bitcoin has shown remarkable resilience, maintaining its position above $95,000 despite one of the largest selling events since the 2022 collapse of crypto hedge fund Three Arrows Capital (3AC).

Bitcoin price showed surprising resilience on Monday, shrugging off one of the largest selling events at spot exchanges since the 2023 collapse of crypto hedge fund Three Arrows Capital (3AC).

According to André Dragosch, head of research at Bitwise Europe, recent market data indicates that spot exchanges experienced their highest selling pressure since 3AC’s meltdown. However, Bitcoin’s price still hovers near the $100,000 mark, hinting at what Dragosch calls “seller exhaustion.”

Back in 2023, 3AC’s downfall triggered a wave of liquidations, taking down several major crypto lenders like BlockFi and Celsius. Yet, despite similar pressures today, Bitcoin remained surprisingly resilient—an encouraging sign for investors eyeing stability in uncertain markets.

Bitcoin’s resilience comes as the U.S. and China ramp up trade war tensions, with the U.S. announcing new tariffs on Chinese goods. This news follows reports that both countries are set to meet and discuss trade disputes, potentially paving the way for a resolution.

Meanwhile, BTC’s key $93,000 support level is crucial, as a drop below could lead to over $1.7 billion in leveraged positions being liquidated, according to Ryan Lee, chief analyst at Bitget Research. This could push the price down to $91,500 or lower.

In other news, U.S. Reverse Repo Facility (RRP) has dropped to its lowest level since early 2021, which could be a potential signal that the Fed’s quantitative tightening measures might be nearing an end, according to the Kobeissi Letter. This might trigger a liquidity shock that could significantly impact Bitcoin’s price.

Whales and retail investors are also seen taking opposite approaches in the market. Retail investors, defined as those holding less than 1 Bitcoin, are accumulating BTC at a pace 72% faster than last year’s average, according to on-chain analytics firm Glassnode.

In contrast, whales, or large holders, have been distributing their Bitcoin holdings at nine times the yearly average since Bitcoin crossed $100,000 in late 2023. This divergent behavior reflects conflicting outlooks on Bitcoin’s trajectory.

Despite being touted as a safe-haven asset, Bitcoin's performance is lagging behind physical gold, which recently hit record highs. Peter Brandt highlights this disparity, while Alistair Milne suggests that BTC could still catch up given its potential for higher returns.

The crypto market continues to see a battleground of opposing predictions, with some analysts like Bill Barhydt foreseeing Bitcoin embarking on a long-term rally toward $700,000. This projection is based on shifts in U.S. monetary policy, which could see potential tax cuts and liquidity injections to refinance trillions in U.S. debt.

Currently, BTC trades at $97,352.50, showing a 0.86% gain on the day and a 1.16% increase over the past week.