Bitcoin Flashes Largest Hidden-Buying Spike of the Cycle Despite Losing $90K Level

[Ben Graham]

Bitcoin is fighting to reclaim the $90,000 level after a sharp drop earlier today, adding fuel to growing fears of a deeper downtrend. Market sentiment has weakened noticeably, with selling pressure intensifying across spot and derivatives markets.

Traders remain cautious as liquidity thins and volatility increases, creating an environment where even minor inflows can trigger outsized price reactions. The recent rejection below $90K highlights the fragility of the current structure and raises questions about whether Bitcoin is entering a more prolonged corrective phase.

However, beneath the surface, on-chain data reveals a striking counter-signal. According to On-Chain Mind, Bitcoin is currently printing the largest hidden-buying spike of the entire cycle. Order flow analysis tracks the relationship between actual buy/sell pressure and the corresponding price movement. When the two do not align, hidden divergences emerge: positive divergences indicate aggressive buying despite muted price action, while negative ones reflect stealth selling.

The size of this hidden-buying spike suggests a major imbalance in favor of buyers—an early sign that large players may be quietly accumulating while the broader market focuses on the decline. Whether this hidden demand can offset the prevailing sell pressure will determine Bitcoin’s next decisive move.

Hidden Buying Supports Reversal Narrative Despite Macro Fear

According to On-Chain Mind, the persistent hidden-buying spike remains one of the strongest signals favoring a future upside reversal. Even after Bitcoin’s most recent drop, the imbalance between real buying pressure and price action suggests that large players are still absorbing supply.

While this type of signal does not guarantee an immediate rebound—and may take several weeks to fully materialize—it indicates that buyers have not exhausted their resources. Historically, such divergences appear near cyclical inflection points, when sentiment is weakest, but accumulation quietly strengthens beneath the surface.

This constructive signal emerges at a time when fear in the market is amplified by external narratives. Renewed headlines about a China Bitcoin ban, despite being recycled and lacking substantive policy updates, have resurfaced across social media, contributing to confusion and short-term panic. Similarly, fresh waves of Tether FUD—focused on reserve transparency and regulatory scrutiny—have pressured liquidity conditions and fueled risk-off behavior.

Together, these storylines have exaggerated bearish sentiment, overshadowing the more nuanced on-chain developments. While retail reacts to alarming headlines, order flow data suggests that sophisticated investors are taking the opposite stance. If hidden accumulation continues, this correction may ultimately resolve with a stronger recovery than current sentiment implies.

Related Reading: Bitcoin STH Loss Transfers Fall 80% From Peak – What Comes Next?

Bitcoin Attempts to Stabilize After Sharp Breakdown, but Trend Remains Fragile

Bitcoin’s 1-day chart reflects a market still under heavy corrective pressure following the steep decline from the $110,000 region. The breakdown sliced through the 50 SMA and 100 SMA with little resistance, signaling a decisive shift in momentum. Price is now hovering below both moving averages, which have begun to curl downward—an early sign that the medium-term trend has weakened. The 200 SMA around the $109,000 zone sits far above the current price, underscoring how aggressive the correction has been.

After reaching a local low near $83,000, BTC has attempted to rebound, but the reaction remains modest. The latest bounce failed to reclaim $90,000 convincingly, forming a lower high that aligns with bearish continuation.

Volume spikes during sell-offs reinforce the dominance of sellers, while buying activity remains comparatively muted. Until BTC can flip the 50 and 100 SMAs back into support—now clustered around $101,000–$108,000—bulls will struggle to regain control.

The chart also shows increasing distance between price and the 200 SMA, a condition that often precedes temporary relief rallies. However, unless Bitcoin closes back above the $95,000–$98,000 region, downside risks persist. For now, BTC is attempting to stabilize, but the broader trend continues to favor caution.

Featured image from ChatGPT, chart from TradingView.com