Analyst: Recent Bitcoin Selling Pressure Mostly From Trapped Liquidity, Longs Demonstrating 'Pyramid Buying' During Dip

BlockBeats News, February 4th. On-chain data analyst Murphy posted on social media, stating that after Bitcoin reached a high of $97,000 on January 15th, it quickly dropped to $73,000 on February 4th, rapidly breaking through the $80,000 psychological support. Under panic sentiment, the upper trapped chips (above $80,000) saw a net reduction of over 610,000 coins in 20 days, accounting for 88% of the total outflow, becoming a major source of selling pressure.

However, on-chain URPD data revealed a significant structural change: the selling pressure from long-term holders of profitable chips has greatly weakened (only accounting for 9.7% of the reduction), indicating a significant reluctance to sell by long-term holders. At the same time, a strong buy-up appeared in the $70,000-$80,000 range, with a net purchase of about 450,000 BTC, nearly twice the absorption in the $80,000-$90,000 range, indicating that funds are "buying the dip," using fiat to resist the decline.

Murphy stated that the difference in this cycle compared to the past is that bulls are showing a continuous and layered defense during the decline, with the chip concentration zone gradually shifting down instead of a catastrophic collapse. Despite no shortage of pessimistic predictions such as "bear bottom at $50,000 or $30,000," once the shorts compress the long defense line to the extreme and with a weak supply side, the market may see a strong bullish counterattack.