NAIROBI (CoinChapter.com)— Bitcoin (BTC) briefly hit an all-time high (ATH) of $99,588 on Nov. 22 before retreating sharply to $92,500 in the following days. On-chain data suggests the decline stems from profit-taking by short-term holders and a slowdown in institutional inflows, reflecting a natural correction after weeks of bullish momentum.
Retail Participation Remains Low Amid Correction
The Korea Premium Index, a key indicator of retail activity, highlights limited retail involvement in Bitcoin’s recent rally. The index remains below -0.5, suggesting that institutional and long-term holders have driven the upward momentum. Historically, the index has surged to extreme levels ahead of Bitcoin’s price peaks, signaling a lack of retail exuberance this time.
Bitcoin Surge Without Retail Involvement. Source: CryptoQuant
Institutional activity also showed signs of cooling. U.S. spot Bitcoin ETFs recorded an outflow of $435.3 million on Nov. 25, breaking a steady inflow streak since Nov. 18. CryptoQuant data confirms that this outflow contributed to the ongoing price decline.
BTC: Bearish Signals Emerge on Technical and On-Chain Metrics
Bitcoin (BTC) is now trading at $92,266.90, down 7.34% from its recent all-time high of $99,588. The Relative Strength Index (RSI) has dropped to 62.12, showing a bearish divergence. While Bitcoin’s price hit higher highs, the RSI made lower highs, a sign that momentum is weakening.
BTC/USD 1-day price chart. Source: TradingView
Open interest and the estimated leverage ratio reached annual highs, triggering liquidations worth $150 million in Bitcoin alone within the past 24 hours.
Bitcoin Short-Term Holders Turning Profitable. Source: CryptoQuant
Meanwhile, the Short-Term Holder Spent Output Profit Ratio (SOPR) hit 1.01, close to its historical threshold of 1.02 during bullish phases. Profit-taking at this level has consistently led to price pullbacks, and the latest data supports this trend.
Notably, Bitcoin’s price may test the critical psychological support at $90,000. A failure to hold above this level could extend the correction to $85,000. On-chain metrics, however, indicate that Bitcoin remains in a broader bull market. Market Value to Realized Value (MVRV), Net Unrealized Profit and Loss (NUPL), and Puell Multiple also suggest upward potential remains intact.
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