Bitcoin News Today: Bitcoin's Support Break Exposes Crypto's Confidence Crisis

Bitcoin Dips Below Critical Support, Market Remains Cautious

Bitcoin (BTC) has fallen below key support levels, sparking renewed caution among investors as the cryptocurrency struggles to regain momentum. The price dropped below $100,000 for the first time since June, with analysts highlighting a confluence of factors, including sustained ETF outflows, weak institutional and retail demand, and bearish on-chain metrics according to market analysis. The 365-day moving average at $102,000 has become a critical technical level, and its failure to hold could accelerate a deeper correction.

The sell-off has been exacerbated by a sharp decline in spot ETF inflows, which saw $870 million in outflows on Thursday-the second-largest single-day withdrawal since their launch according to Seeking Alpha. This follows a broader exodus of institutional capital, with Bitcoin ETFs recording cumulative outflows of $59.34 billion as of late November according to FXStreet analysis. Grayscale's GBTC and BlackRock's IBIT led the outflows, signaling waning confidence in the asset class. Meanwhile, Ethereum ETFs also faced $259.7 million in outflows, their largest since October.

Retail demand has not fared better. XRP's futures open interest (OI) has plummeted to $3.61 billion, a stark drop from its July highs of $10.94 billion, underscoring weak retail participation. Analysts at 10X Research note that the market has entered a bear phase, driven by continued selling by long-term holders and subdued risk appetite. The Crypto Fear & Greed Index has fallen to 16, nearing its March lows, reflecting extreme fear among investors.

Amid the downturn, some players have shown resilience. American Bitcoin reported a third-quarter profit of $3.47 million and doubled its revenue to $64.2 million. The company's BTC holdings rose to 4,004 coins, but shares tumbled 13% in pre-market trading as the broader market slumped. Similarly, MicroStrategy's net asset value dipped below 1, indicating a discount to its Bitcoin holdings. Critics argue that implied Bitcoin demand from MSTR's strategy has not materialized into actual purchases, raising questions about the sustainability of its Bitcoin acquisition model.

Institutional infrastructure is evolving to meet growing demand. Singapore's SGX Derivatives launched institutional-grade crypto perpetual futures, aiming to enhance liquidity and transparency for digital assets. The move aligns with Singapore's rising prominence in the crypto ecosystem, as it ranks 15th in global cryptocurrency adoption.

Technical analysts have identified critical levels for Bitcoin's near-term trajectory. QCP Capital highlighted that a break below $92,000 or the $88,000 CME gap could signal a deeper bearish trend. Conversely, a rebound above the 50-week moving average at $107,940 could validate a short-term bullish outlook.

The market remains in a state of consolidation, with experts urging caution. "Bitcoin's drop is mostly about uncertainty," said CEX.IO's Yaroslav Patsira, noting that macroeconomic clarity-particularly around Fed policy-will be crucial for stabilizing sentiment according to market reports. For now, traders are advised to monitor ETF flows, on-chain selling metrics, and macroeconomic data for potential catalysts according to analysts.