Bitcoin Dips 11% to $97.3K Amid $2B Liquidation Event; Strategy Adds 218,887 BTC
Bitcoin (BTC) retreating below the psychological $100,000 threshold in a notable market development has set off industry-wide liquidations worth more than $2 billion.
Currently trading at $97,300, the flagship cryptocurrency BTC/USD marks an 11% drop from its all-time high of $109,026 based on institutional movements and analytical indicators pointing possible additional correction.
Bitcoin Whale Activity and Market Sentiment
Concerns over possible selling pressure have been brought forth by a noteworthy on-chain movement of 49,700 BTC from the 6-12 month spent output age band (SOAB). XBTManager claims these moves usually anticipate market turbulence and may affect prices in the next days. Against this bearish indication, however, recent data shows that whale addresses have amassed over 30,000 BTC during the current dip, so offering possible price support.
Based on Alphractal’s study, market mood has negative first time since November 2024. For contrarian investors trying to “counter the herd mentality,” this change in opinion could offer appealing purchasing chances.
BTC/USD Technical Analysis
With Bitcoin establishing a symmetric triangular pattern on shorter timesframes, the present market structure reflects the consolidation phase noted in March 2024. Technical analysis indicates possible support levels ranging from $94,101-$92,600 with a fair value gap at $99,500 that might be satisfied in the near term.
Historical data reveals that Bitcoin’s drawdowns have become progressively smaller over recent bull cycles:
- 2016-2017: Average correction of -38%
- 2020-2021: Average correction of -23.25%
- 2024-2025: Average drawdown of just 12%, with 2025 showing an even milder 8.9%
Institutional Developments
Major institutional players still show great conviction in Bitcoin:
- MicroStrategy has rebranded to “Strategy,” adopting the Bitcoin logo and reporting holdings of 471,107 BTC valued at over $45.6 billion, despite a Q4 net loss of $670.8 million.
- BlackRock is reportedly preparing to launch a Bitcoin ETP in Europe, following the success of its US-based iShares Bitcoin Trust (IBIT), which has attracted approximately $57 billion in net assets.
- The US Bitcoin ETF market has seen over $35 billion in aggregate net inflows in 2024, averaging $144 million daily, with projections suggesting an additional $48 billion in inflows for 2025.
Political Landscape
Especially the possible creation of a US Bitcoin Strategic Reserve, the bitcoin market has been attentively observing political events. Recent remarks by Trump administration crypto czar David Sacks revealed that the present policy is to “evaluate” the viability of such a reserve, therefore lowering prediction market odds to 47% for deployment in 2025.
Bitcoin Price Forecast
The institutional adoption story is still solid even if short-term technical signs point to further pressure with likely challenges of lower support levels. Suggesting this could be a healthy consolidation rather than the start of a significant correction, the present loss of 11% from all-time highs fits quite within historical norms for bull markets.
With a decrease to this level, a $90,000 level provides a major psychological and technical support zone; yet, it is still far lower than historical drawdowns. As possible drivers of price recovery, market players should be alert for ongoing institutional flows and patterns of whale accumulation.
ABOUT THE AUTHOR
See More
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals
Top Broker