Key Insights
- •Bitcoin price today slipped below the $90k mark, sparking concerns among traders.
- •The dip comes as the US Spot Bitcoin ETF recorded an outflow of over $1.8 billion over the past four trading sessions.
- •A top analyst has warned of a BTC price pullback to $50,000, citing technical trends.
Market Reaction to Bitcoin's Price Drop
The recent Bitcoin price crash to below $90,000 has caused panic among market participants, with many exploring possibilities of a continuing decline. Notably, the BTC price dip comes amid a broader crypto market selloff, with the overall market cap falling from $3.25 trillion to $3.12 trillion during writing.
Amid this, a Bitcoin price prediction has further spooked traders, with analysts hinting at a potential drop to as low as $50,000. Notably, the prediction for BTC is based on technical indicators, which have caught the eyes of the traders.
In addition, the continuing outflow from the US Spot Bitcoin ETF has further dampened the market sentiment. Many have cited the ongoing outflow to the shifting institutional focus towards the altcoin space, especially after the recent approval of XRP and Solana ETFs.
On the other hand, some market pundits have still maintained their optimistic outlook despite the massive crash today. The experts said that the recent BTC price dip could provide a buying opportunity to traders at a discounted price. This reflects the confidence of the analysts in the long-term potential of the flagship crypto. So, let’s take a quick tour of the recent performance of the asset and see if a further crash awaits or it could witness a recovery.
Bitcoin Price Slips as Institutional Interest Fades
BTC price today has lost more than 4% to slip below the brief support level at $90,000. However, at the time of writing, it has recovered some of its losses and rested at $91,500, indicating that some buyers are entering the market at a discounted price.
Its trading volume rose nearly 50% to $113.66 billion during writing, reflecting a high trading activity in the market. So far, it has been one of the worst fourth-quarter performances for Bitcoin price since 2018, when it lost over 42%. This year, the fourth-quarter losses to date totaled around 20%. In November alone, the flagship crypto has lost nearly 17%, with Bitcoin Futures Open Interest on CME and Binance falling 6% and 1.5%, respectively.
Notably, the dip could also be attributed to the waning interest of the institutions. For context, CoinGlass data showed that the US Spot Bitcoin ETF has recorded an outflow of $255 billion on November 17, marking its four-day outflow streak. Over the past four trading sessions, the investment instrument has recorded an outflow of $1.8 billion. This massive outflow might also have weighed on the investors’ sentiment, which in turn caused the blood bath in Bitcoin price today.
Bitcoin Price Prediction of $50K: Analyst Concerns and Bullish Counterpoints
Amid the ongoing dip in BTC price, a renowned analyst has warned of a pullback to $50,000, citing technical trends. In a recent X post, analyst Ali Martinez noted that if Bitcoin price slips below $98,650, it could continue to witness heavy selling pressure. According to BTC pricing bands, the next targets lie at $75,740, $56,160, or even $52,800. This has spooked traders, especially as Bitcoin price slipped below the brief support at $90,000 today.
However, it appears that not everyone in the space is bearish on the future trajectory of the crypto. For context, in a recent X post, Cameron Winklevoss said, "This is the last time you’ll ever be able to buy bitcoin below $90k!"
In other words, the experts are anticipating the recent dip as a buying opportunity for traders at a discounted price. Having said that, the recent dip might also help in a strong recovery for the asset. Despite that, investors should tread cautiously amid the ongoing volatile scenario in the market.