BTC Falls Below 90,000, But Why Are Bulls Still Increasing Positions?

Bitcoin today touched 89,990.5 USDT, briefly breaking the psychological and technical threshold of 90,000. This might seem like bad news, but a closer look at market reactions suggests it’s not that simple. According to the latest data, BTC has fallen 2.53% in the past 24 hours, yet on-chain whales and institutions are adding to their positions against the trend. This divergence between bullish and bearish signals reflects differing market judgments on Bitcoin’s medium-term trajectory.

The Technical Significance of the 90,000 Level

90,000 is a key psychological and technical support level for Bitcoin in recent times. Data shows that BTC has increased by 3.16% over the past week, and on shorter timeframes, technical signals are positive. Notably, XRP and Bitcoin have completed a golden cross, a cross-asset technical resonance often indicating improving market sentiment.

In the short term, breaking below 90,000 does indeed undermine technical support. However, from a longer-term perspective, this 24-hour decline (-2.53%) is within normal correction ranges and does not alter the upward trend established over the past week.

Divergence Among Market Participants

Interestingly, while BTC dipped below 90,000, market participants’ attitudes showed clear divergence:

This conflicting stance indicates significant disagreement on future market direction. However, from an incremental capital perspective, institutional and long-term holders’ accumulation seems to surpass the short-sellers’ bearish enthusiasm.

Support Factors Remain

Several fundamental data points are worth noting. First, Binance’s Proof of Reserves (PoR) for the 38th cycle shows an increase in user BTC holdings, generally indicating that market sentiment has not collapsed. Second, Bitcoin’s market cap share remains at 58.32%, demonstrating Bitcoin’s dominant position in the crypto market remains intact. Additionally, despite outflows from Bitcoin spot ETFs, prices remain relatively stable, suggesting that selling pressure has not triggered panic.

Arthur Hayes’s latest views are also worth considering. He believes that in certain macro environments, inflation-hedging assets like Bitcoin still have room to rise, and he states that Maelstrom is nearly fully allocated entering 2026. This institutional-level bullish outlook suggests that the majority of market participants are not leaning heavily toward bearishness.

Possible Future Movements

Based on technical targets mentioned in the data, 94,000 USD is seen as the next major resistance level. This implies that even if BTC undergoes short-term correction, the rebound potential remains above 4,000 USD. Of course, this is not guaranteed but a reasonable expectation based on current technicals and market sentiment.

In the near term, 90,000 may be tested repeatedly, but this appears more like market accumulation rather than a reversal signal. If this level is broken again, a reassessment of the medium-term trend will be necessary.

Summary

BTC falling below 90,000 is a short-term event, not something to overinterpret. The market’s bullish-bearish divergence highlights the importance of this level and indicates that bulls still have confidence in a subsequent rebound. Factors such as increased institutional holdings, steadfast long-term holders, and bullish technical signals like the golden cross all suggest this may be just a correction rather than a trend reversal. The key is whether the 90,000 support can hold and if the price can break back above 94,000. Short-term volatility is inevitable, but confirming the medium-term trend requires more data.