Bitcoin Faces Downward Pressure as Short-Term Holders Remain Underwater: Compass Point

Bitcoin investors may want to wait before buying the dip, as the cryptocurrency remains below short-term holders' average cost basis of $98,000, analysts at Compass Point said in a January 21, 2026 note. The asset briefly reached $97,500 last week—the highest level in two months—but failed to sustain momentum above that key threshold, raising concerns of further declines. Bitcoin traded around $90,000 on Wednesday, after dropping to $87,900 the previous day amid macroeconomic jitters. Compass Point noted long-term holders have stabilized their supply at 14 million BTC since November, reducing selling pressure. However, elevated perpetual futures funding rates at 10% suggest leveraged buying could trigger liquidations if prices fall. The recent breakdown of the "golden cross"—with the 50-day moving average falling below the 200-day—adds bearish technical weight. Analysts said they would be more comfortable entering near $80,000. Bitwise CIO Jeff Park added that current sentiment may be the worst ever, despite broader gains in gold and silver.