Bitcoin News Today: Bitcoin's Dip: Correction or Crash as Analysts Clash?

Bitcoin's price swung sharply in recent days, briefly dipping below $90,000 for the first time in seven months before rebounding to $96,500 as of publication. The move has intensified scrutiny over the cryptocurrency's technical support levels and institutional activity, with analysts debating whether the correction signals a deeper bear market or a temporary consolidation within a broader bull cycle. Michael Saylor, CEO of Bitcoin treasury firm MicroStrategy (MSTR), dismissed reports of his company selling Bitcoin, reaffirming its accumulation strategy. MSTR's Class A shares fell 4.2% on Friday as Bitcoin dipped below $95,000, but Saylor forecast the asset would outperform gold and the S&P 500 by 2025.

Technical analysts highlight key support zones as critical for Bitcoin's near-term trajectory. A drop below $90,000 could trigger a 25%-to-40% correction, aligning with historical mid-cycle patterns. Current price action suggests Bitcoin is testing a $92,000–$95,000 range tied to the 6–12 month cost basis and ETF inflow levels. A breakdown from this zone could push the price toward $85,000–$90,000, with deeper support at $75,000–$82,000 if macroeconomic pressures worsen. On-chain data, however, shows no evidence of large-scale dumping by "old whales," with most transactions stemming from 2024 activity and a single 2011-era seller as reported by analysts.

Market sentiment has deteriorated sharply, with the Fear & Greed Index hitting a near nine-month low of 10, indicating "extreme fear." The selloff is attributed to profit-taking by long-term holders, institutional outflows, and leveraged longs being liquidated. Bitcoin's 5% weekly decline has erased its 2025 gains, trading at levels last seen in early March. Institutional redemptions from exchange-traded funds (ETFs) reached $870 million on Thursday, marking an official bear market declaration.

Amid the volatility, El Salvador doubled down on its Bitcoin strategy, making its largest single-day purchase of 1,090 BTC ($100 million) as prices hit multi-month lows according to market reports. President Nayib Bukele celebrated the move on social media, calling it a "buy the dip" strategy. The country's Bitcoin reserves now total 7,474 BTC, valued at $676 million, despite a $1.4 billion IMF loan agreement that prohibits public-sector Bitcoin purchases. Government officials and the IMF have offered conflicting statements, with the latter suggesting reserve increases may stem from internal wallet consolidations rather than new acquisitions.

The aggressive accumulation has not gone unnoticed in the stock market. MicroStrategy's euro-denominated preferred shares, sold at 80 cents on the euro earlier this month, now trade at 78 cents as Bitcoin's rout pressures investor confidence. Conversely, Bitcoin miner Hive Digital Technologies reported a 7.5% stock surge after disclosing record Q2 revenue of $87.3 million and a GPU deal with Dell to expand its AI-driven high-performance computing business.

Bitcoin's path forward hinges on its ability to reclaim the 365-day moving average, which could ease selling pressure and prevent a deeper correction. Analysts remain divided: while some see the dip as a buying opportunity for long-term holders, others warn of prolonged weakness without renewed institutional demand or macroeconomic stability.