Bitcoin (BTC) faced a notable 7% pullback earlier this week, dipping to $90,791 on Tuesday before regaining ground and stabilizing around $97,000 by Friday. While the price momentarily retreated from the psychological $100,000 mark, on-chain data and institutional activity suggest the correction may be healthy rather than bearish. Major players like MicroStrategy and Marathon Digital continue to accumulate BTC, while regulatory progress in countries like Morocco signals growing global acceptance. With valuation metrics still indicating room for growth, analysts project a potential rally toward $146,000.
Signs of Institutional Demand Recovery
Bitcoin’s failure to breach $100,000 last week triggered a short-term correction, but the rebound hints at underlying strength. The decline began early in the week with a 7% drop to $90,791, followed by a steady recovery to over $95,500 by Wednesday and stabilization near $97,000 by Friday.
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Institutional interest appears to be rebounding. According to Coinglass data on Bitcoin Spot ETFs, the week opened with $558.1 million in net outflows over two days. However, demand picked up from Wednesday through Thursday, showing renewed investor confidence. If this inflow trend strengthens, it could provide critical support for a sustained recovery.
On-chain activity further supports this optimism. CryptoQuant’s Exchange Netflow data reveals that after Bitcoin dropped from Monday’s high of $98,871 to Tuesday’s low, holders actively accumulated 35,449.3 BTC by Thursday. This “buy the dip” behavior suggests strong conviction among long-term investors.
Despite this accumulation, Glassnode’s weekly report notes that Bitcoin’s 42% price surge over the past three weeks has led long-term holders to realize a record $2.02 billion in daily profit—a new all-time high. Such profit-taking can create temporary supply pressure, potentially requiring a re-accumulation phase before the next leg up.
Notably, the majority of this selling pressure comes from coins aged between 6 months and 1 year (35.3% of total realized profit), indicating that newer investors are taking profits. In contrast, older, more tenured holders appear to be holding firm, possibly anticipating higher prices in the future. This behavior aligns with swing traders who entered positions after the launch of Bitcoin ETFs and aimed to capitalize on the initial bull wave.
Valuation Metrics Suggest Room for Growth
A key argument for continued bullish momentum comes from valuation analysis. CryptoQuant’s weekly report emphasizes that Bitcoin has not yet entered overvalued territory. Historical data shows that bull markets typically end only after valuation metrics reach extreme levels—conditions not currently observed.
The Bitcoin Profit and Loss (P&L) Index remains within healthy ranges, signaling ongoing accumulation rather than euphoric selling. From a realized price perspective, the current bull cycle could extend to $146,000—the level that acted as a peak in previous cycles, such as April–May 2021.
This projection is based on Bitcoin Realized Price Bands, which track the average cost basis of all existing BTC. The $146,000 threshold represents a historical resistance zone where prior cycles peaked. Reaching this level would align with long-term valuation trends and suggest the current rally remains structurally sound.
Positive Developments Fuel Market Confidence
Beyond technical and on-chain indicators, several macro-level developments are reinforcing bullish sentiment.
On Monday, MicroStrategy announced the acquisition of an additional 55,500 BTC for $5.4 billion, bringing its total holdings to 386,700 Bitcoin. This aggressive accumulation underscores corporate confidence in Bitcoin as a long-term store of value.
Darren Franceschini, co-founder of Fideum, commented on the strategic impact:
“By embracing Bitcoin at scale, the company is not just hedging against the future — it’s actively shaping it.”
Marathon Digital also bolstered its position, adding 703 BTC in November and now holding 6,474 BTC. With $160 million still allocated for future purchases during market dips, Marathon remains committed to growing its Bitcoin reserves.
Globally, regulatory clarity is improving. Morocco announced plans to legalize cryptocurrencies after enforcing a ban in 2017. Bank Al-Maghrib is drafting new legislation to regulate digital assets—a move that could open doors for institutional participation in North Africa.
Similar regulatory advancements in the UK and other regions indicate a broader shift toward structured crypto frameworks. As more nations adopt clear policies, investor protection improves and market legitimacy grows—key drivers for long-term adoption.
Will Bitcoin Reach $100K or Drop to $90K?
Bitcoin briefly touched an all-time high of $99,588 last week before correcting. The 7% decline tested support at $90,791 but failed to break lower convincingly. As of Friday, price action shows stabilization around $97,000.
Technical indicators present a mixed but cautiously optimistic picture:
- The daily Relative Strength Index (RSI) sits at 67—above the neutral 50 level—indicating persistent bullish momentum.
- However, the Moving Average Convergence Divergence (MACD) generated a bearish crossover on Tuesday, suggesting short-term selling pressure.
If bullish momentum resumes, Bitcoin could retest its recent high of $99,588 and potentially break through to $100K. Strong support remains at $90,000—a psychological and technical floor that has held during prior corrections.
A failure to defend this level could extend losses toward $85,000, though current accumulation patterns make such a scenario less likely in the near term.
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Frequently Asked Questions (FAQs)
Q: Is Bitcoin currently overvalued?
A: No. According to CryptoQuant and Glassnode data, Bitcoin remains below historically overvalued levels. The current rally has room to grow before reaching typical bull market peaks.
Q: Why are companies like MicroStrategy buying so much Bitcoin?
A: These firms view Bitcoin as a long-term hedge against inflation and currency devaluation. Its fixed supply makes it an attractive alternative to traditional treasury reserves.
Q: What does Morocco’s crypto legalization mean for the market?
A: It signals growing global regulatory acceptance. Legal frameworks reduce uncertainty and encourage institutional investment in digital assets.
Q: How much Bitcoin do corporations own?
A: MicroStrategy holds 386,700 BTC (1.8% of total supply), while Marathon Digital owns 6,474 BTC (0.16%). Together with other public firms, they represent a growing segment of Bitcoin’s ownership base.
Q: What is the significance of the $146K price target?
A: It aligns with Bitcoin’s realized price bands from previous cycles. This level has historically marked cycle tops—suggesting it could be the next major resistance zone.
Q: Should investors buy during corrections?
A: Many long-term holders do. Dips often present strategic entry points, especially when supported by strong fundamentals and on-chain accumulation.
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