The selling pressure in the crypto market is mounting as Bitcoin prices showcase a sharp drive below $95,000. The pullback initiated by last week’s U.S. Fed’s rate cut decision has triggered a wide-market correction. However, major institutions across the globe actively accumulating BTC have positioned the asset for quick recovery, indicating the market follows a buy-the-dip sentiment.
According to CoinGecko Data, the BTC’s market cap currently stands at $1.89 Trillion, while the 24-hour trading volume is at $63 Billion.
Key Highlights:
- The increasing adoption of Bitcoin and the active accumulation trend by large holders set the asset for a quick bounce back to $100k.
- The Fibonacci retracement level shows that $86k and $79 are crucial support for Bitcoin holders.
- The coin price above a 200-day exponential moving average and 50% FIB indicate a broader trend in bullishness.
Global Bitcoin Adoption Surges as Major Players Accumulate BTC
The global Bitcoin adoption narrative gained momentum as El Salvador, Japanese firm Metaplanet, MicroStrategy, and Matador Technologies made significant investments in BTC.
El Salvador ramped up its Bitcoin accumulation with a purchase of 29 BTC worth $2.84 million, increasing its holdings to 5,995 BTC ($562M). Japanese investment firm Metaplanet recently acquired 619.7 BTC for nearly $60M, bringing its total to 1,762 BTC, earning it the title “Asia’s MicroStrategy.”
Meanwhile, MicroStrategy further solidified its position as the leading corporate Bitcoin holder with a $561M purchase of 5,262 BTC today. Finally, Matador Technologies announced a $4.5M allocation into Bitcoin, reinforcing its strategic role as a reserve asset.
The large-scale accumulation and continued adoption of Bitcoin as a reserve asset by major players has strengthened its legitimacy and credibility as a long-term store of value. As such demand accelerates, the Bitcoin price could rebound quickly and have a stable hold above $100k.
Bitcoin Price Pullback Tests Fibonacci Support Levels
Since last week, the Bitcoin price witnessed a sharp correction from $108,350 to $92,912 registering a fall of 14.6%. The pullback gave a bearish breakdown from the rising channel pattern, which led to a steady uptrend in the daily chart.
The crypto holders also lost the 20-day EMA and 23.6% FIB support level, accelerating the market selling pressure. If correction is prolonged, the asset could dive another 7% to hit 38.2% FIB at $86k or 14.9% to seek support at 50% FIB at $79k.
According to Fibonnaic theory, these levels are suitable for Bitcoin price to regain bullish momentum. A potential bounce will indicate the buy-the-dip sentiment intact in this asset and could drive a rally past $100k.
