Bitcoin Finds Support as Price Dips to Key $94K Level Amid Institutional Buying

Bitcoin (BTC) faced pressure on December 10, with its price dipping below the critical $96,000 mark after an initial rebound from local lows. The move sparked concerns of a potential breakdown, though strong support from institutional buyers appears to be helping Bitcoin stabilize.

BTC Price Action Shows Volatility

Data from Cointelegraph Markets Pro and TradingView indicated that Bitcoin's price action faltered after briefly reaching a high of $98,000, showing signs of weakness as it dropped back under $96,000. The BTC/USD pair faced nearly 2% daily losses as bulls struggled to maintain upward momentum.

Popular trader Skew noted that long positions appeared to be losing steam, with many traders taking profits after Bitcoin’s brief rally. “It looks like longs are rolling off here / taking profits,” Skew commented, adding that the $97,700-$98,000 level is crucial for buyers to reclaim. The failure to hold this level suggests that the market lacks confidence, with Bitcoin needing more strength to push past this resistance.

Meanwhile, the YouTube channel More Crypto Online predicted that Bitcoin could see another dip to its previous low near $94,000, which could be followed by a larger move toward $100,000. "One more low is still likely. After this one more low, it is possible that white wave d can lead to another test of $100,000," the channel’s latest post stated.

Institutional Demand Remains Strong

Despite short-term price fluctuations, Bitcoin continues to attract significant interest from institutional buyers. Trading platform Material Indicators observed strong demand from smaller-volume entities, with a notable surge in buying activity on Binance. "FireCharts binned CVD shows the 2 smallest order classes are being dominated by TWAP bots, which have bought over $100M in $BTC on Binance over the last 10 hours," the platform stated, adding that this activity wasn’t driven by retail investors.

Material Indicators also remained optimistic about Bitcoin’s long-term bullish trend, despite the recent volatility. "The party never stopped; however, some overzealous, over-leveraged partygoers were sent home," the firm commented, referencing the recent liquidations that caused a brief price dip.

Bitcoin ETFs Unaffected by Market Wobbles

Institutional interest has remained resilient despite Bitcoin’s recent price wobbles. United Kingdom-based investment firm Farside Investors highlighted the continued flow of multimillion-dollar net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs), which reached nearly $500 million on December 9 alone.

The continued inflows come even after Bitcoin experienced a sharp correction, triggered by $1.5 billion in long liquidations, which saw the price plunge 3,000 points before bouncing off the critical $95,000 support level. Bitcoin has since consolidated around the $97,000-$98,000 range, leaving altcoins behind.

The rise in ETF inflows marks a significant shift in investor behavior, as ETFs have increasingly shrugged off short-term volatility. This contrasts with previous responses, where dips often resulted in outflows. According to trading firm QCP Capital, both Bitcoin and Ethereum spot ETFs have enjoyed consistent inflows, posting impressive streaks of consecutive days with net inflows—eight days for Bitcoin ETFs and eleven days for Ethereum ETFs.

Upcoming Developments and Corporate Interest

As institutional investors continue to show strong confidence in Bitcoin, the broader market is also awaiting potential developments from corporate giants. On December 10, QCP Capital noted that Microsoft was scheduled to vote on adopting a Bitcoin strategy, a proposal initially pitched by MicroStrategy’s chairman Michael Saylor earlier in the month. If passed, this move could further signal the increasing acceptance of Bitcoin in corporate finance strategies.

Conclusion

While Bitcoin's price has experienced some short-term volatility, institutional demand remains robust, and the market’s overall bullish sentiment appears intact. The continued inflows into Bitcoin ETFs, combined with rising interest from corporate players, suggests that Bitcoin's growth trajectory remains on track, despite recent price fluctuations. As the market consolidates around key levels, all eyes will be on the potential for further price tests, including the $100,000 milestone.