BTC Faces Retest of Local Support Amid Ongoing Whale Selling

In a recent update from algorithmic trading expert Material Indicators, FireCharts binned CVD data reveals that purple whales have continued their selling activity over the last 24 hours as of February 10, 2026. This persistent selling pressure is setting the stage for Bitcoin (BTC) to potentially grind lower toward a retest of its local support levels. As an expert in cryptocurrency markets, this development highlights critical trading dynamics that investors should monitor closely, especially in the context of broader market sentiment and institutional flows. Without real-time price data at hand, we can still draw insights from on-chain metrics and historical patterns to assess potential trading opportunities and risks associated with this whale-driven pressure.

The concept of 'purple whales' in FireCharts refers to large-scale traders or institutions whose cumulative volume delta (CVD) shows a net selling bias, often visualized in purple on the charts. According to Material Indicators' analysis, this selling has not abated, suggesting that these major players are offloading BTC positions amid uncertain market conditions. For traders, this could signal a bearish short-term outlook, where BTC might test key support zones. Historically, such whale activities have preceded price corrections, as seen in previous cycles where similar CVD patterns led to dips before eventual rebounds. Traders should watch for support around the $40,000 to $45,000 range, based on recent local lows, though exact levels depend on evolving market data. This setup presents opportunities for swing traders to position for a bounce if support holds, or for short sellers if a breakdown occurs.

Analyzing Market Sentiment and Institutional Flows

Shifting focus to market sentiment, the ongoing whale selling aligns with a cautious broader crypto environment, influenced by macroeconomic factors like interest rate expectations and regulatory news. Institutional flows, as tracked by various on-chain analytics, show mixed signals; while some funds are accumulating during dips, the net effect of whale selling could pressure prices lower in the near term. For instance, if we consider trading volumes from major exchanges, elevated sell-side liquidity might lead to increased volatility. Traders can use indicators like the Relative Strength Index (RSI) to gauge oversold conditions—currently, if BTC approaches support, an RSI below 30 could indicate a potential reversal point. Moreover, cross-market correlations with stocks, such as the S&P 500, are worth noting; a downturn in equities could exacerbate BTC's grind lower, creating hedging opportunities via BTC futures or options.

From a trading strategy perspective, this retest scenario offers actionable insights. Position traders might consider scaling into longs near support with stop-losses just below, aiming for resistance at $50,000 if a bounce materializes. Day traders could focus on intraday charts, looking for CVD divergences where buying volume picks up, signaling a shift. On-chain metrics, such as active addresses and transaction volumes, provide supporting evidence; a spike in these could counter whale selling and drive a recovery. However, risks remain high— if support fails, BTC could see further downside toward $38,000, based on Fibonacci retracement levels from the last major rally. Integrating this with AI-driven sentiment analysis tools can enhance decision-making, as machine learning models often predict whale movements by analyzing historical data patterns.

In summary, the whale selling highlighted by Material Indicators underscores a pivotal moment for BTC traders. By prioritizing risk management and monitoring key indicators, investors can navigate this grind toward support effectively. Whether this leads to a bullish reversal or deeper correction, staying attuned to institutional behaviors and market flows will be crucial for capitalizing on emerging opportunities in the volatile crypto landscape.