Bitcoin recently dipped to $90,800, marking its largest decline since former President Donald Trump won the 2024 U.S. election. After repeatedly testing the psychological $100,000 resistance level, BTC pulled back sharply from nearly $99,500 — a high reached on November 23 — dropping over 7% before stabilizing. As of the latest data, Bitcoin is trading around $91,941, with a 24-hour loss narrowed to 2.3%.
This correction has sparked renewed debate among market analysts about whether the pullback signals a temporary pause in the bull run or the beginning of a broader reversal. While short-term volatility dominates headlines, on-chain data and expert insights suggest this may be a natural and healthy phase of market maturation.
Why Bitcoin Failed to Break $100,000
Andre Dragosch, Head of European Research at asset manager Bitwise, attributes Bitcoin’s failure to sustain momentum past $100,000 to profit-taking by long-term holders. Following Trump’s election victory on November 8, Bitcoin surged by 37.6% in just under a month, lifting millions of wallets into profitable territory.
“Bitcoin’s valuation is still far from its peak,” Dragosch stated in a recent CNBC interview. “The current stall isn’t a sign of weakness — it’s a natural consolidation after rapid gains.”
According to Dragosch, many early investors who bought during previous bear markets are now cashing out amid favorable price action post-election. This wave of realized profits has created selling pressure that, combined with high market leverage, contributed to the recent downturn.
Market Leverage Adds Volatility
Galaxy Digital CEO Mark Novogratz echoed similar concerns, warning that excessive leverage in the derivatives market amplified the sell-off. With open interest in Bitcoin futures rising significantly in late 2024, even small price movements can trigger cascading liquidations.
“There’s a lot of leverage in the system right now,” Novogratz noted. “So when sentiment shifts slightly, we see outsized corrections.”
He also advised investors to focus on holding Bitcoin directly rather than investing in Bitcoin-adjacent equities like MicroStrategy. During market corrections, such stocks often experience amplified drawdowns due to their dual exposure to both crypto volatility and traditional equity market risks.
Trade Nation senior market analyst David Morrison added that the $100,000 level itself has become a psychological profit-taking zone. For many long-term holders, hitting six figures represents a milestone — one they’re eager to capitalize on.
On-Chain Data Shows Underlying Strength
Despite short-term bearish momentum, on-chain analytics firm Glassnode highlights strong fundamentals beneath the surface. Their latest report reveals that after Bitcoin crossed $90,000 post-election, approximately 14 million BTC held by long-term investors moved into profit.
More importantly, Glassnode notes that spot Bitcoin ETFs have absorbed over 90% of net selling pressure from these long-term holders. This institutional demand acts as a critical price floor, preventing deeper capitulation.
Even as some whales take profits, the supply available on exchanges remains tight. With many holders choosing to reaccumulate or hold through volatility, the circulating supply isn’t expanding significantly — a bullish signal for mid-to-long-term price trajectories.
Is This a Healthy Correction?
Yes — according to most analysts. A pullback after a 37% rally in less than four weeks is not only expected but necessary for sustainable growth. Rapid ascents often attract speculative leverage, which can destabilize markets if left unchecked.
A controlled correction allows new buyers to enter at more reasonable valuations while reducing systemic risk from over-leveraged positions. It also tests market resilience and separates emotional traders from strategic investors.
Historically, Bitcoin has seen similar patterns before major breakouts. The 2017 run-up to $20,000 and the 2021 surge toward $69,000 were both preceded by sharp consolidations that ultimately fueled stronger momentum.
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- Bitcoin price correction
- $100,000 Bitcoin resistance
- Long-term holder profit-taking
- Bitcoin spot ETF demand
- Market leverage in crypto
- Healthy bull market pullback
- On-chain Bitcoin analysis
- Institutional Bitcoin adoption
FAQ: Understanding Bitcoin’s Current Market Phase
Q: Why did Bitcoin drop after approaching $100,000?
A: The drop was primarily driven by profit-taking from long-term holders who bought at lower prices and leveraged liquidations in futures markets. After a 37% rally post-election, some cooling-off was expected.
Q: Is the bull run over?
A: Most analysts believe this is a healthy correction rather than a trend reversal. Strong ETF inflows and limited exchange supply suggest underlying demand remains robust.
Q: How do spot ETFs affect Bitcoin’s price stability?
A: Spot ETFs buy physical Bitcoin and hold it long-term, absorbing sell pressure from other investors. This creates structural support for prices during volatile periods.
Q: Should I sell my Bitcoin now?
A: Investment decisions should align with your personal risk tolerance and time horizon. Many experts recommend dollar-cost averaging and avoiding emotional reactions to short-term swings.
Q: What comes next for Bitcoin?
A: If institutional buying continues and macroeconomic conditions remain favorable (e.g., potential rate cuts), Bitcoin could retest $100,000 in early 2025 after this consolidation phase.
Q: Are altcoins benefiting from Bitcoin’s pause?
A: Some capital has rotated into Ethereum and select altcoins, especially those tied to real-world assets or AI narratives. However, sustained altseason typically follows confirmed BTC breakout.
👉 Monitor live price movements and on-chain trends to time your next move with confidence.
Final Outlook: Consolidation Before the Next Leg Up?
While emotions run high during pullbacks, data suggests this correction is part of a normal market cycle. The combination of strong ETF demand, low exchange reserves, and growing institutional participation paints a fundamentally sound picture.
Short-term traders may react to price swings, but long-term investors appear unfazed. As leverage unwinds and volatility settles, the stage could be set for another upward move — possibly toward that elusive $100,000 milestone.
In the world of digital assets, patience often rewards those who understand that every bull market includes pauses. This dip may not be an end — but rather a recalibration before the next chapter unfolds.