Bitcoin News Today: Bitcoin's $90K Crossroads: Buyers' Defense Could End or Extend Downturn

Bitcoin's price continues to face headwinds as market participants grapple with a three-week rout that has drained $3.2 billion from digital asset products, according to CoinShares data. US spot Bitcoin ETFs recorded $1.1 billion in weekly outflows last week—the fourth-largest such withdrawal on record—amid a 10% drop in Bitcoin's price to around $95,740. Analysts at Matrixport attribute the decline to fading ETF inflows, reduced exposure from long-term holders, and a lack of immediate macroeconomic catalysts, warning that the market may be entering a "mini bear market".

The downward pressure is compounded by technical indicators suggesting Bitcoin's next move hinges on critical support and resistance levels. A recent analysis by Cointelegraph notes that Bitcoin (BTC) is testing the $90,000 level, with bears intensifying pressure to push the price below $89,253. A break below $87,800 could open the door to a further decline toward $83,000. Conversely, a sustained rebound above the $100,000 psychological barrier could signal a short-term reversal, though analysts caution that such a move would require strong institutional buying.

Ether (ETH) and other major altcoins are also struggling. ETH, currently trading near $3,000, faces a critical juncture at the 20-day exponential moving average ($3,365). A breakdown below $3,000 could send the token toward $2,500, while a recovery above $3,444 might reignite a rally toward $3,871. Solana (SOL) and Dogecoin (DOGE) are similarly under pressure, with both tokens nearing key support levels that could dictate their near-term trajectories.

The broader market sentiment is further clouded by macroeconomic uncertainty. The Federal Reserve's upcoming policy decisions are seen as pivotal, with Matrixport noting that Bitcoin's next major move will likely depend on whether the central bank signals rate cuts or tighter monetary conditions. Meanwhile, the U.S. dollar index (DXY) has stabilized near 99.32, suggesting a potential pause in the greenback's rally, which could provide some relief to crypto markets.

Institutional demand, once a cornerstone of Bitcoin's bull runs, appears to be waning. The $1.1 billion in ETF outflows highlights a shift in investor behavior, with capital increasingly flowing into alternative assets. For instance, spot Solana ETFs have attracted $12 million in inflows over 13 consecutive days since their October 29 launch, despite a 15% weekly drop in Solana's price. This divergence underscores the fragmented nature of current market dynamics, where some segments of the crypto ecosystem are still drawing capital even as broader indices decline.

Technical analysts remain divided on the short-term outlook. While some, like Morgan Creek Capital's Mark Yusko, anticipate a milder bear market correction compared to previous cycles, others such as BitMine's Tom Lee suggest that the current selloff may be nearing exhaustion. A key watchpoint is whether buyers can defend the $90,000 level for Bitcoin and the $3,000 threshold for Ether. A failure to hold these levels could extend the correction, while a successful rebound might signal the end of the current downturn.

Looking ahead, the path to a recovery will likely depend on a combination of macroeconomic clarity, renewed institutional participation, and a shift in retail sentiment. For now, the market remains in a state of anticipation, with traders closely monitoring both on-chain metrics and central bank communications for clues about the next move.