Bitcoin price dips to $94K but institutional buyers remain active

Bitcoin (CRYPTO:BTC) experienced significant price fluctuations recently, dipping to a key low of $94,000 before finding support from institutional buyers.

As of December 10, Bitcoin's price action showed weakness, with the cryptocurrency falling below $96,000 after briefly bouncing back to around $98,000. 

This decline resulted in nearly a 2% loss for the day. 

“Looks like longs are rolling off here / taking profits,” popular trader Skew noted, indicating that traders were cautious as the price approached the critical range of $97,700 to $98,000.

The market sentiment appeared uncertain, with traders awaiting stronger signals before committing further.

Technical analysis from the YouTube channel More Crypto Online suggested that another local low could occur following the recent drop to $94,000.

“One more low is still likely. After this one more low it is possible that white wave d can lead to another test of $100,000,” they stated.

Despite this short-term weakness, trading resource Material Indicators reported increased buying interest from smaller entities.

Their analysis showed that smaller order classes were being dominated by TWAP bots that purchased over $100 million in Bitcoin on Binance within a ten-hour period.

“Pro Tip: That ain't retail,” they emphasised, indicating that these purchases were driven by institutional players rather than individual investors.

Market commentary also highlighted continued confidence in the Bitcoin bull run despite recent liquidation events.

“The party never stopped; however, some overzealous, over-leveraged partygoers were sent home,” Material Indicators remarked.

Institutional interest remained strong amid the volatility, with multimillion-dollar net inflows into U.S. spot Bitcoin exchange-traded funds (ETFs).

On December 9 alone, these inflows totaled nearly $500 million.

Trading firm QCP Capital noted that Bitcoin faced $1.5 billion in long liquidations but quickly rebounded off the critical support level at $95,000.

They pointed out that Bitcoin and Ethereum (CRYPTO:ETH) spot ETFs have shown impressive streaks of consecutive net inflows despite price fluctuations.

Additionally, December 10 marked an important vote by Microsoft regarding a potential corporate Bitcoin strategy proposed by MicroStrategy chairman Michael Saylor earlier in the month. 

At the time of reporting, the Bitcoin price was $96,103.76.