Bitcoin’s 14% Dump: Fear for Retail, Opportunity for Whales
Bitcoin dropped over 14% in just 30 days, wiping out all year-to-date gains and testing critical support around $90,000 traders saw red candles and assumed the bull run was over, but the reality is more nuanced.
The correction was driven by overleveraged positions, ETF outflows, and macro uncertainty. Over $1B in leveraged longs were liquidated, U.S. spot Bitcoin ETFs saw $1.8B exit since mid-November, and broader risk-off sentiment hit the market as investors awaited Fed guidance. Technically, BTC broke key supports, triggering automated selling and bearish sentiment.
Retail sentiment has hit Extreme Fear, but on-chain data tells a different story. Wallets holding 1,000+ BTC increased by 2.2%, reaching a four-month high. While smaller investors panic-sold, large holders quietly accumulated, signaling strong long-term conviction.
Technicals show a market at a critical juncture. The RSI near oversold, MACD still bearish and $90K support level are key to watch. Reclaiming resistance around $93.4K could set the stage for a recovery, while failure to hold support may push BTC lower toward $85,000.
Looking ahead, analysts remain bullish for 2025. VanEck targets $180K, Standard Chartered $200K, and PlanB’s S2F model projects ~$500K. ARK Invest even sees BTC reaching $1.2M by 2030, based on adoption and global liquidity.
The takeaway ? This wasn’t a fundamental breakdown. It was a market reset, shaking out weak hands while smart money quietly buys. The path to six figures remains intact if ETF inflows return, $90K holds and macro conditions ease.
In short, BTC’s dip is not the end — it’s a setup for the next leg up. The market always rewards conviction and this could be the opportunity that defines 2025. 🚀
Insights from EdgenTech