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BTC is back in the spotlight as it nears the $100K mark. BTC had a brief all-time high last week at $99,860 but pulled back to around $92K and found the support at $93K. Although short term rectification has brought about fluctuation it is backed by institutional buying and strong fundamentals on the blockchain.
The most important news comes from BlackRock which has further upped its position in the IBIT Bitcoin ETF. The divulging records show BlackRock now has $77 million of shares in Tesla, up from only $4 million June this year. This tremendous growth implies the institutions’ belief in the future Bitcoin potential even as the broader market experiences fluctuations.
Traditional investors are warming up to the product as evidenced by the $267 million poured into the IBIT ETF in November. During this period, other Bitcoin ETFs were experiencing outflows of funds, but BlackRock’s action shows that the organisation believes that Bitcoin ETFs will become a permanent part of the traditional financial sector.
Short-term Bitcoin price movements have been observed to be influenced by whales who hold long term bitcoin investments and not by institutions or ETFs. Analyses from on-chain data providers reveal that some Investors who have held coins for long term sold 128, 000 BTC in November and the US spot ETFs took in 90% of this selling.
Bloomberg analyst Eric Balchunas said, “The call is coming from inside the house. It’s long-term holders who are driving these moves, not a lack of institutional demand.” This dynamic highlights the resilience of institutional interest despite market volatility.
Other macroeconomic factors have also influenced Bitcoin’s recent lows. Price increases of tariffs by Donald Trump for China, Mexico, and Canada, put upward pressure on the US dollar which adversely affects BTC along with equity markets. Other altcoins such as Ethereum, Solana and Dogecoin have also registered massive corrections.
Despite these headwinds, Bitcoin remains in a bullish phase, supported by key metrics like the Market Value to Realized Value (MVRV) and the Puell Multiple, which signal continued upward potential.
Bitcoin has stabilized at around $93K after retracing from its all time high. Analysts view the $92K support level as critical. Breaking this level could lead to further declines, while holding it positions Bitcoin for another rally. If BTC holds above this level, a push to break the 100K level would be witnessed.
The Relative Strength Index (RSI) also shows that it has found support. Suggesting a short-term rebound to $95K-$96,000 is likely.
Large institutional investors and major individual investors are still buying Bitcoin. Wallets holding at least 10 BTC added 63,922 coins in November, worth approximately $6.06 billion. This accumulation boosts Bitcoin’s long-term outlook, as it reflects confidence in the asset’s future growth.
Popular crypto analyst Ali Martinez noted that these patterns suggest temporary price dips, with rebounds likely as accumulation persists.
As much as Bitcoin’s path to $100K remains intact, analysts predict continued volatility. Joe Consorti, head of growth at Bitcoin custody firm Theya, emphasized that Bitcoin closely follows global liquidity trends with a 70-day lag. This suggests a potential 20-25% correction may occur before the next major rally.
However, these fluctuations are part of Bitcoin’s natural market cycle. Analysts advise investors to use these dips as accumulation opportunities, as Bitcoin’s long-term fundamentals remain robust.
Bitcoin’s resilience at $93K, coupled with strong institutional interest and positive on-chain metrics, reinforces its bullish trajectory. With support levels holding and inflows into Bitcoin ETFs like BlackRock’s IBIT fund surging, BTC appears well-positioned for a rally to $100,000 and beyond.
As macroeconomic factors and long-term holder activity influence short-term movements, Bitcoin’s ability to attract institutional capital and maintain robust on-chain metrics underscores its potential as a cornerstone of the global financial system. Investors should keep a close watch on BTC’s price action, particularly around the critical $93K support level, as the cryptocurrency gears up for its next major milestone.
