Bitcoin News Today: Bitcoin Drops 2.5% as Institutional Offloading and Fed Rate Cut Delays Intensify

Bitcoin has entered a sharp corrective phase, with the cryptocurrency shedding over 2.5% in the past 24 hours amid intensified selling pressure and heightened volatility [1]. Prices have slipped below critical short-term levels, including the $118,500 resistance zone, raising concerns about a potential deeper pullback toward the $112,000–$110,000 support range [1]. This decline follows a significant liquidation event driven by large institutional offloading, compounded by renewed hawkish sentiment from the U.S. Federal Reserve, which has pushed expected rate cuts further out and shifted investor focus to alternative assets [1].

Technical indicators underscore the bearish momentum. The Bollinger Bands have tightened after a month-long expansion, signaling a potential descent into consolidation, while the RSI has dropped sharply, reflecting waning bullish strength [1]. On-chain metrics, including declining CMF and OBV readings, further validate the dominance of selling pressure [1]. Analysts note that Bitcoin’s failure to reclaim $118,000 ahead of July’s monthly close could jeopardize a rebound toward the $124,000–$126,000 range [1].

The sell-off has erased over $100 billion in crypto market value since mid-July, with altcoins like XRP also suffering losses amid broader crypto weakness [6]. A key contributing factor is the expiration of $2.5 billion in BTC futures on December 25, which some suggest exacerbates short-term volatility as traders adjust positions [3]. While analyst Michaël van de Poppe highlighted a lower high as a bearish signal, he also noted that a pullback below $114,000 could create buying opportunities for long-term holders [4]. However, without a clear reversal in momentum, Bitcoin may face continued downward pressure, particularly if broader market conditions remain bearish [4].

Market participants are closely monitoring whether Bitcoin can stabilize above $114,000 to avoid further declines. A successful defense of this level could trigger a rally toward $120,000, while a breakdown below $110,000 risks a retest of the $100,000 support zone [1]. The coming weekend is seen as a critical period, with chart patterns suggesting both bullish and bearish scenarios. Investors are urged to balance short-term risks against long-term strategic opportunities, as the cryptocurrency’s cyclical nature often sees recoveries following such dips, provided fundamental demand remains intact [4].

Sources:

[1] [Has Bitcoin Nosedive Begun? Here’s Why the BTC Price is Down Today & Here’s Where it May Reach!](https://coinpedia.org/price-analysis/has-bitcoin-nosedive-begun-heres-why-the-btc-price-is-down-today-heres-where-it-may-reach/)

[2] [Bitcoin news: Say goodbye to holding coins and waiting...](https://www.openpr.com/news/4120133/bitcoin-news-say-goodbye-to-holding-coins-and-waiting-and-turn)

[3] [SunnyMining Turns BTC Surge into Passive Profits...](https://www.openpr.com/news/4118949/sunnymining-turns-btc-surge-into-passive-profits-with-new-btc)

[4] [Michaël van de Poppe (@CryptoMichNL) / X](https://x.com/cryptomichnl?lang=en)

[5] [XRP Plunges to $3.02 Amid Crypto Market Slump—Why...](https://www.btcc.com/en-US/square/coincentral/685900)

[6] [Over $100B Gone From Crypto Markets as Altcoins Get Obliterated...](https://cryptoadventure.com/over-100b-gone-from-crypto-markets-as-altcoins-get-obliterated-market-watch/)

[7] [Stock market today: Dow, S&P 500, Nasdaq trade mixed as...](https://sg.finance.yahoo.com/news/stock-market-today-dow-sp-500-nasdaq-trade-mixed-as-wall-street-weighs-google-tesla-earnings-233839940.html)