Bitcoin Echoes 2021 Market Setup as Whale and Shark Wallets Decline

• Bitcoin price shows weakness as charts repeat a bearish 2021 market structure.

• Whale and shark wallet counts decline despite selective accumulation by larger holders.

• Bitcoin ETF outflows accelerate, reinforcing growing bearish market sentiment.

Bitcoin’s weakness continues to frustrate traders as selling pressure caps every recovery attempt. Price action remains heavy, with BTC struggling to build momentum above key support zones. As Bitcoin flirts with the $87,000 level, confidence appears fragile across the market. On-chain data now adds another layer of concern, reinforcing the idea that sentiment continues to turn defensive. Combined with ETF outflows, recent developments suggest a cautious environment dominated by risk aversion rather than optimism.

$BTC repeats 2021 pattern.

Double top. Dump. Bounce. Another dump.

Nobody is prepared for this scenario.

Do NOT say I didn’t warn you later. pic.twitter.com/0IJh7CL6R8

— ᴛʀᴀᴄᴇʀ (@DeFiTracer) December 23, 2025

Bitcoin Price Structure Resembles the 2021 Cycle

Crypto market analysts have drawn attention to a price structure that closely mirrors the 2021 cycle peak. The chart highlights a double top formation, followed by aggressive selling pressure. This pattern previously marked the end of a major bull phase. According to Tracer, the current structure raises similar red flags, especially as momentum continues to weaken after each bounce.

The analysis also points to the possibility of a temporary rebound. BTC could still attempt a push toward the $100,000 region before sellers regain control. Such rebounds often attract late buyers expecting continuation. History shows these rallies can be misleading, especially when broader market structure remains fragile.

If the pattern plays out fully, the next move could turn violent. Tracer warned that a renewed sell-off might drag Bitcoin below the $60,000 region. Many traders may remain unprepared for deeper downside, especially after months of strong upside performance. Sudden market sentiment shifts often accelerate declines once key levels fail.

ETF Outflows Add Pressure to an Already Fragile Market

On-chain data from Santiment supports this cautious outlook. The number of wallets holding at least one Bitcoin has dropped by 2.2 percent since a one year high on March 3. Declining wallet participation often reflects fading retail interest during uncertain periods. Reduced network growth can weaken long term price support.

However, Santiment also identified a contrasting trend beneath the surface. Wallets holding more than one Bitcoin have increased combined balances by roughly 136,670 BTC. This behavior suggests stronger hands continue accumulating during weakness. Larger holders often take advantage of fear driven sell-offs to build positions.

Bitcoin price action also struggles relative to traditional markets. Recent sessions show a negative correlation with US technology stocks. Gold and silver continue outperforming, attracting capital as defensive assets. This divergence highlights shifting capital flows away from risk oriented assets.

US spot Bitcoin ETFs remain a major source of downside pressure. After recording nearly $497 million in outflows last week, selling continued into the current trading sessions. Persistent redemptions reflect weakening institutional demand during periods of uncertainty.