Bitcoin seeks support under pressure; can the key levels hold?

Bitcoin is currently in a sensitive period. The current price is $93,030, down more than 7% from the October all-time high of $126,080, and the market is widely focused on the $70,000 key support level. Short-term technical indicators are under obvious pressure, but institutional continued involvement adds variables to the outlook.

Institutional Power Reshaping Market Dynamics

The most noteworthy aspect is the change in institutional fund flows. MicroStrategy currently controls over 650,000 Bitcoins, accounting for more than 3% of the global circulating supply, a concentration unprecedented in the history of the crypto market.

Since the launch of Bitcoin spot ETFs, billions of dollars have been injected into the market, but the situation reversed in the past month—$3.8 billion was redeemed in November, exerting heavy downward pressure on prices. Interestingly, institutional investors did not withdraw simultaneously; within the first six days of December, a large institution purchased $226 million worth of Bitcoin. This opposing flow of funds suggests increasing market divergence.

Technical Challenges and Support Levels Emerge

Technical indicators are currently leaning bearish. Bitcoin has broken below the 50-day and 200-day moving averages, and the Relative Strength Index (RSI) is in the neutral zone, indicating further volatility potential. Analysts point out that if these supports are broken, the next target zones will be between $70,000 and $75,000.

Market observer Ali Charts shows in the latest chart that Bitcoin has broken through several key psychological levels, potentially triggering a downtrend. However, analyst Jackis believes that even if it reaches $70,000, it will not replicate past bear market horrors—this correction is essentially a process of early holders transferring chips to institutions, rather than a systemic panic event.

On the three-day chart, analyst Jelle has identified possible bullish divergence signals, which historically often accompany local bottoms, suggesting that if the price tests $70,000, the most severe decline may be nearing its end.

Fundamentals Remain Robust; Correction May Be a Buying Opportunity

Despite short-term technical pressures, the long-term logic remains solid: limited fixed supply, accelerating institutional adoption, clearer regulatory frameworks, and an increasingly solidified role as a strategic reserve asset.

Fidelity analyst Jurrien Timmer believes Bitcoin could undergo a deeper correction to the $65,000–$75,000 range. However, he emphasizes that such levels have historically been good entry points. 30% to 40% retracements during bull markets are common in the crypto space, and this cycle will be no exception.

More notably, long-term price models predict—based on current fundamentals—that Bitcoin could reach $300,000 by 2029. Federal Reserve policies, inflation trends, and geopolitical developments will be key variables, and Bitcoin’s correlation with traditional risk assets is rising.

The Moment of Truth: Can Support Hold?

$70,000 has become a market focal point. This level is both a challenge and an opportunity—technically bearish, but institutional accumulation continues on dips, and the fundamental support remains intact. The price movement in the short term will determine whether this cycle can continue its upward trajectory. The coming weeks are a critical window for the market to confirm the bottom or trigger a new correction.