Bitcoin's Latest Move Highlights Change in Cycle Dynamics

Source: CoinEdition Original Title: Bitcoin’s Latest Move Highlights Change in Cycle Dynamics Original Link:

• There is a significant change in the Bitcoin price dynamic.
• Capital flows that trigger massive price swings have dried up.
• Bitcoin whales are accumulating the digital asset amid an ongoing pullback.

Bitcoin’s price dropped below $90,000 on Thursday morning after surging approximately 10% in the first week of January 2026. The latest price action has triggered projections among cryptocurrency analysts, highlighting a change in the price dynamics of the pioneer cryptocurrency.

No More Wild Swings for Bitcoin

According to data from TradingView, BTC surged to $94,792 on Monday, January 5, before experiencing a sharp reversal, which has seen it drop to $89,953 at the time of writing. Following this behavior, Cryptoquant founder Ki Young Ju reiterated the opinion that the historical patterns of wild swings in Bitcoin prices have become a thing of the past.

Ju noted that capital inflows that triggered such price swings have dried up, and it is rare to see institutional investors dumping their digital asset holdings, as was common with retail investors of a few years ago. According to Ju, liquidity channels have become more diverse, with funds rotating between asset categories.

Bitcoin Will Fill the Next CME Gap

In the meantime, renowned cryptocurrency investor Ted Pillows predicts that the latest pullback in Bitcoin price will continue until another CME gap is filled. Pillows highlighted how BTC filled a recent price gap on the CME chart, with another gap further lower around the $87,000-$88,000 price region. He believes the price will fill this gap before any potential reversal.

Despite the potential for a further drop in Bitcoin’s price, Lookonchain’s data suggest ongoing accumulation by Bitcoin whales. The blockchain analysis platform revealed that three Bitcoin wallets, possibly belonging to the same whale, recently accumulated 3,000 BTC, worth $280 million.

Recent Liquidation Launched BTC Into Neutral Zone

The positive mindset among Bitcoin bulls validates the argument that the recent decline is a result of the massive liquidation experienced by overleveraged traders after Bitcoin’s impressive surge at the turn of the New Year. On-chain data reveal that the initial pullback in Bitcoin’s price triggered a liquidation of about $460 million in leveraged positions.

In the meantime, the latest move plunged Bitcoin into a neutral zone in the liquidity heatmap, with crypto analysts anticipating the next significant move for the pioneer cryptocurrency.