Bitcoin Faces Unprecedented Challenges as $90K "Not the Dip"

Bitcoin’s bull market has stumbled after a dramatic $12,000 loss in just two days,

with prices briefly touching $92,700 before recovering to $94,955 as of Dec. 20.

Both retail and institutional investors are on edge, and analysts warn of potentially

deeper corrections.

$90K Wasn’t the Bottom: Analyst Warnings

  • Market Sentiment: Bitcoin’s rapid descent from $96,000 triggered panic,

    resulting in nearly $900M in liquidations over 24 hours (CoinGlass).

  • ETF Exodus: U.S. spot Bitcoin ETFs experienced record outflows of $679M,

    signaling waning institutional confidence (Farside Investors).

Elliott Wave Theory & Onchain Insights

  • BitQuant’s Prediction:
    Using Elliott Wave theory, analyst BitQuant suggests BTC could drop further,

    with a possible bottom in the mid-$80K range.

    • “Sorry, but no, $90K was not the dip,” he warned.

  • Whalemap Analysis:
    Onchain data reveals significant accumulation zones at $60K–$67K,

    providing potential long-term support levels.

  • “Risk reward is well defined on the macro scale—no go below $60K anytime

    soon,” Whalemap noted.

Macro Factors Driving the Decline

Bitcoin’s pullback aligns with broader market corrections triggered by shifts in U.S. macro policy:

  • Fed’s Hawkish Stance:
    A reduced pace of rate cuts for 2025 and resurgent inflation spooked risk-

    asset markets.

  • “The overly bullish positioning left markets vulnerable to shocks,”

    QCP Capital summarized.

What’s Next for Bitcoin?

  • Short-Term Risks:
    Analysts suggest BTC could revisit the $80K range amid holiday-induced low

    trading volumes and persistent volatility.

  • Long-Term Prospects:
    Despite the pullback, Bitcoin’s fundamentals remain robust, with many

    predicting a recovery in early 2025. Accumulation zones indicate a strong

    the risk-reward ratio for long-term holders.

Takeaway

Bitcoin’s current struggle is a stark reminder of the market’s inherent volatility.

While short-term corrections are painful, they can clear speculative excess and

create new opportunities for long-term investors.

Will BTC bounce back in 2025, or are we heading for deeper waters? Let us know

your predictions!

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This is not financial advise. DYOR