• Bitcoin hovers near $122,000 as whale sell-offs outweigh institutional buying.
• Analysts see key support between $118,000 and $120,000 for a possible rebound.
• Growing institutional demand signals Bitcoin’s shift toward long-term market maturity.

Bitcoin (BTC) hovers near the $122,000 level amid growing uncertainty, as market control gradually shifts from early adopters to large institutional investors seeking long-term positions. The market has been facing pressure because of the selling by long-term holders. The volatility is raising concerns among traders, and it becomes speculation on whether Bitcoin could manage to sustain its current support level or fall below it in the near term.

Source: CoinMarketCap

Bitcoin has gained roughly 8.50% since early October, suggesting continued upward momentum into the fourth quarter. But upward momentum is starting to wane. While prices are near record highs, trader behavior has cooled down and a number of analysts anticipate consolidation before any meaningful move higher.

Institutional Buyers Eye Bitcoin’s $118,000 Support Zone

Analysts are monitoring a retest of the $118,000 to $120,000 range for Bitcoin in the near term. Buyers would look to defend this region and it constitutes a major support area. Ted highlighted that a drop to that level might prompt renewed buying from institutional investors. A hold in this range could potentially allow BTC to recover and build up its momentum over the next few weeks.

Source: X

The institutional demand has increased due to the recent inflows to the Bitcoin-related funds. It is indicated that there is great involvement of professional investors especially via exchange traded products. 

Also Read: Bitcoin Faces Pressure Near $121,000 but Long-Term Outlook Stays Bullish

Such change is a sign of a wider movement to accept BTC as an asset type. And in the meantime, there is exposure reduction by some initial holders which is an indication of the shift by individuals to institutional ownership.

The market signifies a look neutral across the board. Traders have grown like hogs and the volatility is still high. Analysts also indicate that it is possible that a build up of patients during this period would be altruistic in the long term. 

On-chain data shows that some of the high-value wallets have lessened their short exposure. One of the long-term holders is said to have just increased a short, the value of which is in the millions of dollars, shortly after dumping his BTC shortly after selling off a significant portion of it.

The most liquidity area that analysts have found is around the $118,000 level where most of the leveraged positions have concentrated. Short-term downward pressure then may take place in forced liquidations in case the prices decline below this zone.

Source: X

In the meantime, one of the co-founders of BitMEX, Arthur Hayes, believes that the conventional four-year cycle of halving in Bitcoin transition is proving redundant. He gives that the key market forces are no longer present as non-zero supply but have gone up to be posed by the overall liquidity status of the world. 

In his view, liquidity is high, which contributes to the minimal possibility of sharp market corrections over the next few years. More likely, however, BTC will undergo a phase of relative stasis, which is enhanced by rising capital flows and less restrictive monetary policies. Hayes predicts the ability of such an environment to maintain a bullish momentum probably in the long term assuming that temporary alterations remain.

Also Read: Bitcoin at a Crossroads: Will $120K Support Break or Ignite a Rebound?