Smart-money accumulation amid retail selling is seen as an optimal setup for a potential breakout, though overall sentiment remains mixed with bearish warnings competing against bullish indicators.

Santiment analysts note ongoing whale and shark accumulation amid retail selling, describing it as a long-term bullish divergence with potential for a crypto breakout.

The takeaway is a bullish divergence driven by smart-money inflows into bitcoin while retail participation wanes, yet future price action remains uncertain and highly sensitive to broader market conditions.

Bitcoin has cooled after a volatile start to the year, dipping around the high $89,000s as prices slid about 3% to 4% over the last 24 hours amid macro tension and geopolitical headlines.

Early 2026 volatility has kept Bitcoin near the $89,000 level, with a temporary bounce followed by renewed declines, signaling ongoing macro-driven swings.

The big-picture view shows BTC trading under $88,000 as macro tensions persist, with recent data placing the price around $89,329 at the time of writing.

Santiment notes rising social-media chatter around Bitcoin, indicating heightened attention despite geopolitical frictions.

Smart-money wallets holding 10 to 10,000 BTC added about 36,322 coins worth roughly $3.2 billion over nine days, a 0.27% increase in large-holder exposure.

Between January 10 and 19, smart money accumulated about $3.21 billion in BTC, while retail wallets under 0.01 BTC sold around $11.66 million, underscoring a clear divergence.

Bitcoin’s rally toward near $98,000 is framed as being propelled by on-chain smart-money accumulation rather than retail buying, suggesting potential for continued upside.

The price move is viewed as driven more by institutional-like accumulation than randomness, with future moves tied to continued whale buying and shrinking retail participation.

Market sentiment shows high social-media activity around Bitcoin, with Fear & Greed signaling fear and the Altcoin Season Index indicating a Bitcoin-dominant environment.