Bitcoin Price Could See More Correction in the Near Term After Losing Crucial Support at $93K

Bitcoin price continued with bearish sentiment on the last day of 2024 after dropping below a crucial support level of around $93K in the past 24 hours.

output: Key Points

Bitcoin price BTC $93 910 24h volatility: 0.2% Market cap: $1.86 T Vol. 24h: $54.75 B

Bitcoin price continued in bearish correction on the last day of 2024 after dropping below a crucial support level of around $93K in the past 24 hours.

While the flagship coin has been in a correction mode since reaching the psychological target of about $100K earlier this month, investors remain optimistic of a bullish recovery in 2025 spurred by the ongoing adoption by institutional investors.

According to Franklin Templeton, the cryptocurrency industry is set to shift from speculation aspects to utility-focused in 2025. Also, the cryptocurrency industry has become an integral part of the global financial industry fueled by clearer regulatory frameworks, institutional adoption, and advances in AI-crypto convergence.

Institutional Interest in Bitcoin at the End of 2024

Demand for Bitcoin from institutional investors in the past few days varied significantly. The US spot Bitcoin ETFs registered a net cash outflow of over $800 million in the last two weeks.

On Monday, December 30, the US spot Bitcoin ETFs registered a net outflow of about $426 million, as none of the issuers registered a net cash inflow.

BlackRock’s IBIT reported a net cash outflow of about $36.52 million, Grayscale’s GBTC registered a net cash outflow of about $134 million, and Fidelity’s FBTC reported a net cash outflow of about $154 million.

As a result, the US spot Bitcoin ETF market is set to close in 2024 with total net assets of over $106 billion, thus becoming the best-performing ETF in the debut year.

Meanwhile, MicroStrategy Inc (NASDAQ: MSTR) continued with its weekly Bitcoin purchases after reporting an investment of around $209 million between December 23 and December 29. Consequently, the company will close the year with around 446,400 Bitcoins, which is more than 2 percent of the total supply.

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According to on-chain data analysis by CryptoQuant, BTC price could continue in bearish correction in the near term and potentially find solid support at around $80K, where there is not much incentive for traders to sell.

Moreover, Bitcoin price lost a crucial support level of around $93k in the past 24 hours, thus setting the precedent for further selloff in the near term.

From a technical analysis standpoint, Bitcoin price, in the daily time frame, has been forming a bearish reversal pattern in the past few weeks.

In addition to closing below the 50-day Moving Average (MA) in the past five days, a potential head and shoulders (H&S) pattern coupled with the bearish divergence on the Relative Strength Index (RSI) spells further bearish sentiment.

However, crypto analyst Ali Martinez is optimistic that the macro Bitcoin bull run is not yet over, since the bear market begins once the monthly RSI hits 92 and is currently at around 75%.

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