Selling Pressure Mounts Near $100K While Institutions Keep Buying the Dip, El Salvador Weighs Legal Tender Changes
Bitcoin is showing resilience around the $97,600 level, with strong institutional flows and robust fundamentals supporting the market despite recent volatility. While profit-taking near the psychological $100,000 mark triggered some liquidations, underlying metrics remain bullish.
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- Bitcoin trading around $97,600 after brief dip below key support level
- ETF inflows remain consistently positive with $369.8M in latest daily flows
- El Salvador signals potential policy shift on Bitcoin business requirements
- Royal Government of Bhutan taking strategic profits from BTC holdings
Fundamentals Remain Strong
The market's fundamental indicators show no significant signs of weakness that would suggest a major correction. ETF flows continue to demonstrate robust institutional demand, with BlackRock and Fidelity products leading sustained inflows. The consistent buying pressure from these regulated investment vehicles provides crucial market support.
Leverage Remains Primary Risk
While fundamentals appear solid, the high leverage in the crypto derivatives market poses the main risk for potential volatility. The recent pullback from near $100,000 triggered significant liquidations, highlighting the market's sensitivity to leveraged positions. However, unlike previous correction periods, this leverage-induced volatility is occurring against a backdrop of strong spot buying and institutional accumulation.
Institutional Landscape Evolving
The institutional picture continues to evolve, with mixed signals from different players. While El Salvador considers modifying its Bitcoin requirements to secure IMF funding, the Royal Government of Bhutan's strategic profit-taking from its 11,688 BTC holdings demonstrates treasury management rather than bearish sentiment.
The bullish case remains supported by:
- Sustained ETF inflows across multiple products
- Strong institutional buying interest
- Positive technical structure despite recent volatility
- Clear pattern of dip-buying at support levels
Market focus now turns to whether Bitcoin can maintain support above $97,635 and make another attempt at the $100,000 milestone. While leverage-induced volatility remains a near-term risk, the strong fundamental backdrop suggests pullbacks are likely to find willing buyers. Seasonality in December favors bulls.
Bitcoin (D1 Interval)
Bitcoin is currently retesting the 15-day EMA, a key level in its ongoing trend. For bears, the immediate target is the 23.6% Fibonacci retracement level at $94,843. Bulls are eyeing the $100,000 mark, a significant psychological resistance. Both sides will closely watch the $97,635 level, the weekly high from mid-November, as a crucial pivot point. A breakout above this could set the stage for a push toward reclaiming the all-time high.
The RSI is cooling off toward the neutral zone, showing slight bearish divergence, hinting at a potential slowdown in momentum. Meanwhile, the MACD is tightening, with a buy signal still pending, reflecting market indecision. These technical indicators suggest a possible pause or reversal, with critical levels defining the path forward for both bulls and bears.
Source: xStation
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