The price of Bitcoin has pulled back, but the larger structure remains intact. After the first peak of 2026 on January 14, BTC corrected by nearly 6%, briefly dropping around 92,000 USD. Since then, Bitcoin has stabilized, although it shows about a 2.6% drop in the last 24 hours.
At first glance, this move looks weak. However, when you look more broadly, both the chart structure and on-chain data suggest that this may be controlled profit-taking rather than the beginning of a deeper correction. The fundamental question is simple: is this just a pause, or is Bitcoin gearing up for another upward move?
The cup-and-handle structure of Bitcoin maintains a bullish sentiment.
On the daily chart, the price of BTC is still in a cup-and-handle formation and appears to be testing the breakout from the handle. This is significant because the handle forms above an ascending neckline. An ascending handle indicates that buyers are stepping in at higher levels, which usually increases the chances of a successful breakout if resistance is broken.
Another positive signal comes straight from the momentum. From November 4th to January 19th, the price of Bitcoin created a lower low, but the relative strength index (RSI) shows a higher low. The RSI measures price momentum by comparing recent gains to losses. When the price drops but the RSI improves, it indicates that selling pressure is weakening.
The analytical team from the all-in-one crypto ecosystem B2BINPAY, in an exclusive comment to BeInCrypto, stated that the price movement suggests patience rather than exhaustion. The analytical team shared:
We see that Bitcoin is gradually emerging from a long flat phase that began in mid-November 2025. There are no sharp impulses on the chart, which usually indicates a pause before another attempt to test the $100,000 level.
The bullish divergence suggests that a broader, three-month downtrend, during which Bitcoin fell by about 15%, may be losing strength. The divergence will gain confirmation if Bitcoin holds above $92,000 and starts to rise again. As long as the price remains in the grip, the bullish structure remains intact.
Since the chart still looks positive, why did Bitcoin drop at all?
Does profit-taking by long-term holders explain the drop?
The answer is evident in the on-chain data. The recent pullback aligns with profit-taking by long-term holders, not panic selling.
The NUPL of long-term holders, which is the net unrealized profit/loss, decreased from about 0.60 to 0.58 during this move. NUPL shows how much unrealized profit investors have. A decline indicates profit-taking. This was one of the most severe NUPL pullbacks on a monthly basis, similar to that from January 5th to 10th.
This is also confirmed by the net position indicator of long-term investors. This metric tracks whether holders who have kept their coins for at least 365 days are accumulating or selling. On January 14th, long-term holders sold about 25,738 BTC. By January 18th, this number had risen to about 62,656 BTC. This indicates an increase in selling pressure of about 150% in just a few days.
Despite the increased pressure of profit-taking, analysts note that demand-side behaviors have not significantly weakened. According to the B2BINPAY team, broad market positioning still shows steady accumulation beneath the surface. B2BINPAY explained:
Buyers are present but not in a hurry. At the same time, large holders are still accumulating. On January 13th, BTC ETFs recorded nearly $900 million in inflows, the most since October 7th. This was also the day when Bitcoin rose by almost 8%.
This selling explains why Bitcoin's rallies have not continued to rise recently. When investors sell with conviction, it limits the potential for growth, even if the chart looks good. On the other hand, not everything is negative. While long-term holders were selling, another group was quietly doing the opposite.
Whales are accumulating.
Entities holding over 1,000 Bitcoins are still accumulating. Since January 12th, the number of these entities has risen from about 1,273 to roughly 1,290. This is a small increase, but importantly, it occurred before the drop and continued during it.
This shows that whales did not sell at market weakness. Their accumulation helps absorb some supply, even as long-term players took profits.
From a price perspective, Bitcoin is now at a decision point. To regain strength, the price must return above $95,200, which signals a breakout from the 'handle' formation. Above this level, $98,800 becomes the next key resistance. A breakout will open the way to the formation target at $111,800, about 13% higher than the dynamic neckline.
The B2BINPAY team pointed out similar levels for Bitcoin during a conversation with BeInCrypto. Analysts explained:
The structure generally supports continuation. As long as Bitcoin remains above the $94,000–$95,000 area, a move to $100,000–$105,000 is realistic within a few weeks, and then the chance for a range of $120,000–$140,000 in the later part of 2026, if demand holds. A failure would likely mean a pullback to $88,000–$90,000, where liquidity is already concentrated.
If Bitcoin closes below $92,000, the structure will weaken. However, a deeper drop below $89,200 would completely invalidate the formation.
It is worth noting that the recent drop was caused by profit-taking, not fear. The structure remains bullish. Whales are still buying. However, for the breakout to hold, long-term players must stop selling and start buying again. Until that happens, the hope for a 13% breakout for Bitcoin remains valid but is not guaranteed.
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