Bitcoin’s (BTC) Price Dip: $100k Still On Track, Smart Money Is Loading Up

TLDR:

• Bitcoin has dropped 7.6% from its all-time high of $99,645, currently trading at $92,476
• Exchange reserves are declining similarly to the March-November 2020 period, suggesting accumulation before next surge
• Retail traders remain largely absent from the market, indicated by Korea Premium Index below -0.5
• Over 206,491 traders liquidated in past 24 hours, with total market liquidations of $624.99 million
• Technical indicators show first major support at $90,500 and resistance at $93,500

Bitcoin’s recent price movement has captured market attention as the leading cryptocurrency retreats from its recent all-time high, pulling back to the $92,000 range. The correction comes after Bitcoin reached an unprecedented peak of $99,645 last week, representing a 7.6% decline from those levels.

The current trading session has seen increased selling pressure, with Bitcoin dropping approximately 4.6% in just 24 hours. This movement has triggered a wave of liquidations across the cryptocurrency market, affecting both long and short positions.

Bitcoin
BTC Price

Data from CryptoQuant reveals an interesting pattern in Bitcoin exchange reserves that might provide context for the current market situation. These reserves have been steadily declining, mirroring a pattern observed during the March to November 2020 period, which preceded a strong market upturn.

The similarities to the 2020 pattern are particularly noteworthy. During that time, the decrease in exchange reserves was followed by substantial inflows in December 2020, which helped fuel upward price momentum. Market analysts suggest this could indicate a similar setup might be forming in the current market environment.

Trading volumes have remained robust throughout this correction, indicating active market participation despite the price decline. The global cryptocurrency market capitalization has adjusted accordingly, dropping by nearly 6% to $3.34 trillion in the past day.

The liquidation data presents a clear picture of the market impact, with CoinGlass reporting that 206,491 traders have faced liquidations in the past 24 hours. The total value of these liquidations has reached approximately $624.99 million, highlighting the scale of the market movement.

Technical analysis of the current market structure shows Bitcoin trading below several key levels, including the 100-hour Simple Moving Average. A bearish trend line has formed with resistance at $93,500, suggesting this level could be crucial for any potential short-term recovery.

The market has established support levels at $91,800 and $90,500, with these areas likely to be tested if selling pressure continues. On the upside, Bitcoin faces resistance at $94,800, which aligns with the 50% Fibonacci retracement level of the recent downward movement.

Institutional activity remains a key factor in the market, with large-scale buyers continuing to maintain their positions despite the correction. This behavior contrasts sharply with retail trader participation, which remains notably subdued.

The Korea Premium Index, a key metric for gauging retail involvement, currently sits below -0.5, indicating limited participation from smaller market participants. Historically, this index has shown extreme readings before major price peaks, making it a valuable indicator for market analysis.

Short-term price action shows Bitcoin attempting to stabilize around the $92,500 level, with traders closely monitoring the $93,500 resistance zone. A clear break above this level could open the path to test higher resistance at $94,750.

The current market structure suggests Bitcoin needs to maintain support above $90,500 to avoid further downside. If this level fails to hold, the next major support zone lies around $88,000.

Looking at market indicators, the Hourly MACD (Moving Average Convergence Divergence) shows some bullish momentum, while the Relative Strength Index (RSI) remains below the 50 level, indicating neutral to slightly bearish short-term conditions.

The combination of declining exchange reserves and muted retail participation suggests the market might be in an accumulation phase. This pattern often precedes stronger upward movements, particularly when institutional interest remains stable.

Current market data shows continued outflows from major exchanges, suggesting buyers are moving Bitcoin to longer-term storage solutions. This behavior typically indicates a strong hold mentality among market participants.

At the time of writing, Bitcoin trades at $93,314, with immediate support at $91,800 and resistance at $93,500.