Bitcoin’s price momentum has taken a sharp turn, with BTC trading around $95,700** on Wednesday after slipping below the critical **$96,000 level. The downward movement follows a 5.17% drop the previous day, reigniting market volatility and triggering a wave of liquidations across the cryptocurrency landscape. In the past 24 hours alone, over $694 million** in leveraged positions have been wiped out—nearly **$125 million of which were Bitcoin-specific—signaling growing bearish sentiment.
Signs of Mounting Selling Pressure
One of the most telling indicators of weakening confidence in Bitcoin is the CryptoQuant BTC Net Taker Volume on Binance, which has turned sharply negative. This metric, which tracks whether buyers (takers) are absorbing supply or sellers are dominating order books, plummeted to –$325 million, marking its lowest point in 2025.
This spike in negative volume coincided with the release of key U.S. economic data—the ISM Manufacturing PMI and JOLTs report—both of which delivered weaker-than-expected results. Historically, such macroeconomic signals tend to dampen risk appetite, pushing traders away from volatile assets like cryptocurrencies.
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A sustained negative net taker volume suggests that large traders and institutions may be offloading BTC holdings, increasing downward pressure on price. If this trend persists, it could foreshadow further declines in the near term.
Bearish Sentiment Reflected in Trader Ratios
Another red flag for Bitcoin bulls is the declining Bitcoin long-to-short ratio, currently sitting at 0.89 according to Coinglass data. This is the lowest level in over a month and indicates that short positions (bets on price decline) now outnumber longs (bets on price increase).
When the long-to-short ratio falls below 1.0, it reflects growing pessimism in the derivatives market. Traders are increasingly hedging against downside risk or actively speculating on further losses. While such extremes can sometimes precede reversals, they often confirm ongoing bearish momentum—especially when aligned with other negative indicators.
Institutional Demand Shows Signs of Cooling
Institutional interest, a major driver behind Bitcoin’s rally toward $100,000 earlier this year, appears to be cooling. Data from Coinglass shows that **Bitcoin spot ETFs** recorded a net inflow of just **$52.4 million on Tuesday—down sharply from $978.6 million** the day before.
While not yet an outflow, this dramatic slowdown in institutional buying suggests waning enthusiasm at current price levels. If inflows continue to dwindle or shift into outflows, it could remove a key pillar of support for BTC’s price structure.
Historically, strong and consistent ETF inflows have preceded or accompanied major price rallies. Conversely, stagnation or reversal in these flows often correlates with consolidation or correction phases.
Technical Analysis: Key Levels to Watch
From a technical standpoint, Bitcoin’s recent close below the $100,000 psychological and support level** is significant. This breach opens the door for further downside, with immediate support seen at the **38.2% Fibonacci retracement level of $92,493. This Fibonacci level is derived from the move between the November 4 low ($66,835) and the December 17 high ($108,353).
Additional technical indicators reinforce the bearish outlook:
- The Relative Strength Index (RSI) on the daily chart sits at 47, below the neutral 50 threshold and trending downward—indicating weakening momentum.
- Price action remains below key moving averages, suggesting short-term resistance overhead.
- Volume patterns show stronger selling activity during pullbacks compared to buying during rebounds.
However, should BTC stabilize and reclaim $100,000** with strong conviction, the path could reopen toward retesting its **all-time high of $108,353, set on December 17, 2024.
FAQ: Understanding Bitcoin’s Current Downturn
Q: Why is Bitcoin falling now?
A: Bitcoin is declining due to a combination of macroeconomic headwinds (like weak U.S. economic data), increased selling pressure on exchanges (especially Binance), reduced institutional inflows into spot ETFs, and rising short positions in derivatives markets.
Q: How much has been liquidated in the recent drop?
A: Over the past 24 hours, approximately **$694.11 million** in crypto positions have been liquidated, with nearly $125 million attributed to Bitcoin alone.
Q: What does a negative Net Taker Volume mean?
A: A negative Net Taker Volume on Binance means more traders are selling BTC than buying it at market prices—indicating dominance by sellers and potential downward price pressure.
Q: Is this correction a buying opportunity?
A: That depends on your risk tolerance and market outlook. Some investors view pullbacks as opportunities to accumulate BTC at lower prices, especially if fundamentals remain strong. However, further downside toward $92,500 cannot be ruled out in the short term.
Q: Could Bitcoin recover to $100,000 soon?
A: Yes—but it will require renewed buying pressure, positive macroeconomic signals, and sustained ETF inflows. A daily close above $100,000 would be needed to confirm bullish recovery.
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Final Outlook: Caution Amid Volatility
Bitcoin’s recent dip below $96,000 underscores the volatile nature of digital assets—even in mature markets. With macroeconomic uncertainty lingering, institutional demand slowing, and technical indicators leaning bearish, caution is warranted.
Traders should monitor:
- The $92,493 Fibonacci support level for signs of stabilization.
- Daily ETF inflow trends for shifts in institutional sentiment.
- The long-to-short ratio and Net Taker Volume for changes in trader positioning.
While long-term fundamentals for Bitcoin remain robust—driven by adoption, scarcity, and growing integration into financial systems—short-term price action suggests consolidation or further downside is possible.
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For investors navigating this phase, maintaining disciplined risk management—such as setting stop-losses, diversifying exposure, and avoiding over-leverage—is essential. As always in crypto markets, volatility creates both risk and opportunity in equal measure.