Bitcoin News Today: As Retail Fears Peak, Whales and ETFs Fuel Bitcoin's Rebound

Bitcoin's recent price action has sparked renewed optimism among analysts, with key technical and institutional signals pointing to easing selling pressure. The cryptocurrency, which dipped below $84,000 in late November, rebounded sharply after hitting extreme oversold levels on the relative strength index (RSI). This indicator, which measures momentum by comparing price gains and losses over time, dipped below 30-a threshold often signaling short-term exhaustion among sellers. Ali Martinez, a crypto analyst, highlighted that Bitcoin's last two dips into this zone in 2023 and March 2025 were followed by short-term recoveries. The rebound coincided with over $206 million in liquidations, suggesting that aggressive selling had temporarily stabilized.

Institutional confidence has further bolstered market sentiment. Spot Bitcoin ETFs, particularly BlackRock's iShares Bitcoin Trust (IBIT), have seen a surge in inflows, reversing a three-week outflow streak. On November 21, ETFs recorded $238.4 million in net inflows, with IBIT alone capturing $60.6 million. Analysts attribute this to strategic accumulation by older investors, who now hold 95% of ETF assets, providing stability amid volatility. Abu Dhabi's sovereign wealth funds have also tripled their IBIT holdings, underscoring institutional demand.

The market's divergence between retail fear and institutional optimism is stark. The "Fear & Greed Index" hit a reading of 12-a level of extreme fear-yet on-chain data reveals whales (large holders) have increased Bitcoin holdings, and exchange reserves are dwindling as coins move to cold storage. This pattern historically precedes market recoveries, as sophisticated investors often buy against retail sentiment. Technically, Bitcoin is testing a critical support zone near $86,500, with a breakout above $90,000 seen as pivotal for restoring bullish momentum.

Broader macroeconomic factors also play a role. The Federal Reserve's potential December rate cut could inject liquidity into risk assets, historically coinciding with strong ETF inflows. If enacted, this might drive Bitcoin toward $100,000 by early 2026. Meanwhile, geopolitical developments, such as Turkmenistan's 2026 plan to regulate crypto under state control, reflect growing institutional recognition of digital assets as strategic assets.

Despite short-term volatility, the confluence of technical exhaustion, institutional inflows, and macroeconomic tailwinds suggests Bitcoin's selling pressure may be waning. Analysts caution, however, that sustained recovery hinges on maintaining positive ETF flows and holding key support levels.