With Bitcoin holding steady above $90,000 and many investors in profit, the risk of panic selling is minimal, analysts suggest.

Investors are unlikely to panic sell as long as Bitcoin’s (BTC) price stays above the $90,000 threshold, analysts at Singapore-based blockchain firm Matrixport say. As trading volumes have skyrocketed, jumping from $40 billion to nearly $400 billion at times, more investors are jumping in, with Matrixport seeing this trend to “continue driving adoption in 2025.”

It’s worth mentioning, though, that most of the volume increases tend to happen when prices and market cap rise. As Matrixport notes, the “vast majority of Bitcoin investors are currently in profit, reducing the likelihood of panic selling as long as Bitcoin remains above $90,000.”

However, should the largest cryptocurrency by market capitalization plunge below that level, sentiment on the crypto market might change accordingly.

Bitcoin might hit resistance

Analysts also note the decline in weekend trading volumes, attributing it to the growing dominance of institutional players, who, they say, primarily trade on weekdays. This shift is gradually reducing retail traders’ influence and reshaping market dynamics, per Matrixport.

Bitcoin has been holding strong above $96,000 despite all the market turbulence. Where things go next might depend on Bitcoin’s next move. But not everyone is convinced things are looking up.

Analysts point to the Inter-exchange Flow Pulse indicator, which tracks Bitcoin moving between spot and derivatives markets. As a rule, more BTC flowing into derivatives is a bullish sign. But right now, the indicator is flashing bearish, suggesting Bitcoin might hit more resistance before it can break out.