Bitcoin Dips to $96K Amid MARA and Hut 8’s Major Accumulation SpBitcoin ( CRYPTOCAP:BTC ), the flagship cryptocurrency, faced a notable price dip to $96,300, reflecting a 6% decline over the past 24 hours. Despite this, significant institutional purchases by MARA Holdings and Hut 8 highlight the growing confidence in Bitcoin's long-term potential.
Institutional Accumulation on the Rise
MARA recently purchased 15,574 BTC at an average price of $98,529 per Bitcoin, totaling $1.53 billion. This acquisition, financed through zero-coupon convertible notes, has increased their holdings to 44,394 BTC, worth $4.45 billion at current prices.
MARA’s year-to-date BTC yield stands at an impressive 60.9%, underscoring their strategic accumulation approach.
Another institutional player, Hut 8, announced the purchase of 990 BTC for $100 million. These acquisitions demonstrate that major players view current prices as an attractive entry point, reinforcing Bitcoin's narrative as a store of value.
Market Sentiment and Activity
Despite the dip, CryptoQuant reports no signs of widespread panic selling. This indicates resilience among market participants, with many holding firm in anticipation of a rebound. Additionally, Bitcoin remains 4.59% up in December and 60% up over the past four months, reflecting its strong performance in the broader macroeconomic environment.
Technical Analysis
1. Relative Strength Index (RSI):
Bitcoin’s RSI currently sits at 35, signaling oversold conditions. Historically, such levels have often preceded a price rebound.
2. Fibonacci Retracement Levels:
Immediate support is observed at the 65% Fibonacci retracement level, a critical zone that could stabilize the price. However, persistent selling pressure might push Bitcoin lower, with potential targets at:
- $90,000 (1-month low)
- $80,000 (key psychological level)
3. Volume and Liquidations:
Over $100 million in liquidations occurred in the last 24 hours, suggesting significant market volatility.
Short-Term Outlook
While the dip has raised concerns, Bitcoin's fundamentals remain strong, bolstered by robust institutional demand. The oversold technical conditions and significant support levels suggest a potential recovery in the coming days. However, traders should remain cautious, as further dips could occur if broader market conditions deteriorate.
Conclusion
Bitcoin’s dip to $96K reflects short-term volatility, but the sustained interest from institutional players like MARA and Hut 8 underscores its long-term potential. As market sentiment stabilizes, Bitcoin could see renewed bullish momentum, making this an opportune moment for investors to assess their strategies.
