Analyst: Recently, Bitcoin selling pressure mainly comes from trapped positions, with bulls showing a "pyramid-style buying" during the decline.

BlockBeats News, February 4 — On social media, on-chain data analyst Murphy stated that after Bitcoin reached a high of $97,000 on January 15, it quickly dropped to $73,000 on February 4, breaking through the psychological support of $80,000 rapidly. Under the dominance of panic sentiment, the trapped positions above $80,000 have decreased by more than 610,000 BTC within 20 days, accounting for 88% of the total outflow, becoming the main source of selling pressure.

However, on-chain URPD data reveals an important structural change: the profit-taking positions of long-term holders have significantly weakened (accounting for only 9.7% of the reduction), indicating that long-term investors are showing a clear reluctance to sell. Meanwhile, strong buying interest has emerged in the $70,000-$80,000 range, with a net purchase of about 450,000 BTC, nearly twice the absorption volume in the $80,000-$90,000 range, indicating that some funds are “buying more as prices fall,” using real money to layer resistance.

Murphy said that this cycle is different from previous ones in that the bulls are showing continuous and layered defense during the decline, with concentrated positions gradually shifting downward rather than collapsing in a cliff-like manner. Despite pessimistic predictions that the market may see a bottom at $50,000 or $30,000, once the bears push the bulls’ defense line to the extreme, coupled with weak supply-side, the market may see a strong counterattack from the bulls.