Bitcoin Drops Under $90,000 with Whales Turning Bearish and Technicals Weakening

Bitcoin Analysis

Bitcoin briefly fell under the $90,000 mark on Wednesday, adding fresh pressure to a market that has struggled to regain strong directional momentum since the start of December.

The move pushed the world’s largest cryptocurrency down more than 2 percent over the past 24 hours, dragging the broader crypto market capitalization to about $1.786 trillion. Trading volumes, meanwhile, showed signs of exhaustion as participants waited for clearer signals from institutional flows and macro conditions.

Key Takeaways

Bitcoin dropped below $90K as whales exited long positions and increased short exposure while retail kept buying dips.
December 10 spot ETF flows totaled $223.5M, dominated by IBIT inflows, while GBTC and others faced continued outflows.
Technical indicators reflect weakness, with bearish patterns forming and no clear reversal signals yet.

The downturn comes at a moment when several underlying indicators point toward growing caution among Bitcoin’s largest market participants. Although price volatility has compressed in recent weeks, on-chain behavior suggests a shift in sentiment beneath the surface. This time, the imbalance appears most pronounced among whales, who are reversing previous bullish positions just as retail traders lean into the dip.

Whales Shift to Shorts While Retail Buys the Dip

According to data highlighted by analyst Joao Wedson, whales have begun closing long positions and reopening shorts after spending months heavily favoring upward momentum. Retail traders, meanwhile, continue taking the opposite approach, treating every pullback as a buying opportunity. The divergence between these two cohorts resembles the structure seen between February and April 2025, a period characterized by a tightening trading range and long stretches with minimal price advancement.

Visuals comparing whale-vs-retail delta show a noticeable turn: green retail accumulation spikes are appearing just as whale-driven flows retreat to neutral or negative territory. When this pattern has emerged in previous cycles, Bitcoin often moved sideways far longer than expected, frustrating both bulls and bears.

Liquidation data reinforces the cautionary tone. Roughly $171 million in BTC positions were wiped out over the last 24 hours, with longs accounting for the bulk of the damage. That imbalance underscores how traders betting on a quick rebound were caught off guard as BTC slipped under the $90K threshold.

ETF Activity Sends Mixed Signals Despite Strong IBIT Flows

Spot Bitcoin ETFs continue to influence market sentiment, but the latest data from December 10 paints a complicated picture. Total flows reached $223.5 million, yet almost all of the inflow came from a single product: BlackRock’s IBIT, which absorbed $192.9 million. Several other issuers struggled to attract demand, and some continued bleeding assets. Grayscale’s GBTC, once the dominant player in institutional Bitcoin exposure, posted another $33.8 million in outflows, extending its multi-week losing streak.

This concentration of inflows suggests that institutions are reallocating rather than exiting the market entirely, but the uneven distribution limits the positive impact on Bitcoin’s price. Historically, broad inflows across multiple ETF products have aligned with stronger upside momentum, while fragmented flows have preceded periods of stagnation.

Market analysts note that ETF data remains one of the clearest reflections of institutional appetite, and the current trend shows demand is present but inconsistent. Until flows broaden beyond IBIT and stabilize across the sector, many expect Bitcoin’s recovery attempts to remain choppy.

Technical Indicators Point to Ongoing Weakness

BTC’s technical landscape adds another layer of uncertainty. On the 4-hour chart, RSI stands near 41, hinting at fading strength but not yet extreme oversold territory. The MACD also remains in negative alignment, with no bullish crossover developing.

Crypto strategist Ali Martinez highlighted a potential bearish flag forming on Bitcoin’s mid-term charts. If validated, the structure could open the door to a pullback toward $70,000, although that scenario would require a confirmed breakdown below current support levels.

For bulls, the key objective is to reclaim the $94,000 area, which has repeatedly acted as a ceiling for the past two weeks. Without a sustained break above that zone, Bitcoin risks drifting within a narrowing band that historically precedes decisive moves.

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Author

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.