The past week’s movements reveal a complex interplay between selling pressure from long-term investors and fresh buying activity. While whales have capitalized on the rally, selling significant portions of their holdings, blockchain data tells a bullish story. External wallets show growing Bitcoin reserves, while centralized exchanges report declining BTC balances—suggesting many market participants remain optimistic despite temporary headwinds.
Selling pressure from profit-takers pushed Bitcoin to test the $92,400 support zone, but a robust bounce at this level indicates the correction might be contained. Meanwhile, institutional flows are reshaping Bitcoin’s short-term trajectory. Spot Bitcoin ETFs saw record monthly inflows, but institutions began taking profits as month-end approached, redirecting gains into altcoins.
This shift highlights a broader market trend. Bitcoin’s dominance dropped from 60% to 57%, as altcoins like Ethereum outperformed. Ethereum posted a 6% weekly gain, dwarfing Bitcoin’s 2% decline, signaling growing investor interest in the broader crypto market.
Macroeconomic developments have added a subtle tailwind to Bitcoin. Last week’s weaker U.S. dollar, spurred by dovish inflation data and shifting sentiment around proposed Trump tariffs, provided fresh support. As the DXY index faltered, Bitcoin buying picked up from key support levels.
However, a lack of major catalysts could weigh on momentum. With the holiday season ahead, thinner trading volumes might lead to subdued volatility, leaving Bitcoin in a holding pattern unless a significant driver emerges.
Bitcoin’s technical outlook remains bullish despite recent consolidation. The $92,400 support, aligned with the Fib 2.618 level of September’s rally, has proven resilient and now serves as a key floor. To the upside, $99,000 looms as the next critical resistance. A daily close above this level could open the door to reclaiming $100K and possibly targeting $105K, guided by Fibonacci projections.
Short-term support rests at the 8-day EMA near $95,000, which has consistently held during pullbacks. On a broader scale, Bitcoin remains within a rising weekly channel. The upper boundary at $105K aligns with the Fib 2.618 extension, serving as a potential top for the next leg up.
Still, traders should remain cautious. Breaching the $92,400 support could signal a deeper correction, with $85,000 emerging as the next downside target. For now, all eyes are on Bitcoin’s ability to retake $100K and reignite the rally.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to invest. Cryptocurrencies are inherently volatile, and any investment decision carries risk. Always conduct thorough research and consult a financial advisor when necessary.
This article was originally published here.
