Bitcoin dipped below $96K on Friday, marking its third consecutive day of losses, as macroeconomic factors and profit-taking exerted pressure on the market.
The cryptocurrency’s decline accelerated on Thursday following comments from Federal Reserve officials suggesting slower interest rate reductions in 2025.
At the time of publication, Bitcoin was trading at $95,012, reflecting a 6.5% drop over the past 24 hours and a 5.1% decline for the week.
Spike in “Buying the Dip” Mentions
As Bitcoin’s price fell below $96,000, discussions surrounding “buying the dip” surged across social media platforms. According to market intelligence provider Santiment, mentions of the term reached their highest level in over eight months.
Notably, this trend aligns with previous periods of heightened optimism among investors, including the major sell-off in August. Since then, Bitcoin’s market capitalization has rebounded significantly, rising by 81%. Historically, such moments of heightened social interest have coincided with eventual market recoveries, as reflected by Bitcoin’s increase in market cap.
Holder Accumulation and Exchange Outflows
Elsewhere, data from blockchain analytics firm IntoTheBlock showed notable shifts in Bitcoin ownership trends. Over the past seven days, holdings among large investors increased by 3.30%, suggesting heightened accumulation amid the price correction.
However, the 30-day metric revealed a 95.02% decline, likely reflecting profit-taking activity during Bitcoin’s recent record highs. Despite short-term fluctuations, a 90-day ownership increase of 136.17% demonstrated sustained buying interest over the longer term.
In addition to rising holdings, outflows from aggregated exchanges have increased, signaling a preference among investors to transfer Bitcoin to private wallets. Surges in outflow volumes consistently aligned with recent price drops.
A 24-hour increase of 4.83% in exchange outflows highlighted renewed accumulation activity, although the past week showed a decline of 4.28%.
Key Support Levels Shift Amid Pressure
In a related evaluation, blockchain data revealed critical support zones for Bitcoin below the $100,000 mark, underscoring significant demand. Analysis from IntoTheBlock indicated that approximately 1.45 million BTC, valued at $141.37 billion, were accumulated around the $97,500 price point.
However, this support failed to hold as selling pressure intensified, forcing Bitcoin below $96,000.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
