- Bitcoin and Ethereum spot ETFs returned to net outflows on January 22, reinforcing a broader risk-off shift.
- Bitcoin has broken below the $92,000–$94,000 support zone and is now testing key support near $86,900.
- Large short positions, including a reported $265.9M portfolio, are in profit, adding pressure as bears position for a deeper correction.
Bitcoin price is trading near $89,000 on January 23, 2026, down sharply in recent sessions. Multiple on-chain and market indicators point to growing caution among investors, with exchange reserves dropping, ETF outflows resuming, and large traders betting heavily on further declines.
Exchange Reserves Hit Multi-Year Lows
Data from CryptoQuant shows Bitcoin reserves on centralized exchanges have fallen to around 2.5 million BTC, down from a peak of roughly 3.5 million in July 2021. Over the same period, Bitcoin’s price has risen from about $40,000 to over $120,000 at its recent highs before pulling back.
The steady decline in exchange-held Bitcoin suggests long-term holders are moving coins to cold storage, reducing the amount available for immediate sale.
Many analysts view this as a bullish supply-shock signal over the longer term, but short-term price action has remained weak despite the tightening supply.
Spot ETF Outflows Return
U.S. Bitcoin spot ETFs recorded $32.1 million in net outflows on January 22, while Ethereum ETFs saw $42 million leave. Total Bitcoin ETF assets under management still stand at a substantial $115.99 billion, but the return of outflows after weeks of steady inflows has raised concerns.
The reversal comes alongside a broader risk-off move in markets, with investors appearing to reduce exposure to volatile assets.
Meanwhile, Gold has broken above $4,900 per ounce in one of its strongest rallies in decades. Analysts attribute the surge to central bank buying, rising sovereign debt levels, negative real interest rates, de-dollarization trends, and heightened geopolitical uncertainty.
The flight to traditional safe-haven assets contrasts sharply with Bitcoin’s recent weakness, highlighting a temporary shift in investor preference for less volatile stores of value.
Bitcoin Price Chart Shows Bearish Structure
The daily Bitcoin chart on TradingView reveals a clear downtrend from the all-time high near $108,000. Price has broken below a key support zone around $92,000–$94,000 and is now testing the next major level near $86,945 (marked on the chart).
A large liquidity sweep occurred earlier in the decline, with price briefly dropping below previous lows before recovering slightly, classic “liquidity taken” behavior often seen before further downside.
A descending trendline (drawn from the highs) remains intact, acting as dynamic resistance. Volume has also been elevated on down days, suggesting conviction behind the selling.
The chart includes a hand-drawn support box around current levels with the annotation: “If this doesn’t hold, we’ll be testing for new lows.”
The overall structure remains bearish as long as the price stays below the broken support zone (now resistance) near $92,000. A clean break and close below $86,000 would likely open the door to a deeper correction toward $80,000 or lower.
Large Short Positions Add to Downward Pressure
A major trader identified as a Trump insider is maintaining a $265.9 million fully short portfolio across Bitcoin, Ethereum, and several altcoins.
The position is currently up over $4.3 million in unrealized gains, indicating the trader is profiting from the recent drop.
Separately, unconfirmed reports claim the Trump-linked insider placed a $300 million short position shortly after a recent speech, fueling speculation of coordinated bearish bets.
While rumors should be treated with caution, the large short positions confirm that sophisticated traders are positioned for continued weakness.
Bitcoin faces a confluence of negative signals: resuming ETF outflows, falling exchange reserves (bullish long-term but not preventing short-term drops), record gold prices, bearish technical structure, and aggressive short positioning.
The coming sessions, particularly around the noted $86,900–$87,000 support, will be critical in determining whether the correction deepens or buyers step in to defend the level.
