Over the past two weeks, Bitcoin's price has repeatedly tested the $90,000 mark. This resurgence in activity has been fueled by improving retail investor sentiment, renewed bullish expectations for an end-of-year rally from fund managers, and a significant Bitcoin purchase announced by Strategy.
Institutional Perspective on Bitcoin's Cycle
Matthew Sigel, head of digital asset research at VanEck, highlighted comments from Bernstein, which stated that the Bitcoin cycle has deviated from its typical four-year pattern. Bernstein's analysis suggests an elongated bull cycle, with consistent institutional buying offsetting any potential retail panic selling.
These observations align with remarks made by Larry Fink, the chair and CEO of BlackRock. Fink indicated that sovereign wealth funds are increasingly allocating capital to Bitcoin, even as the asset has experienced a decline from its peak of $126,000.
"I know they bought more in the 80s. And they’re establishing a longer position. And you own it over years. This is not a trade. You own it for a purpose, but the market is skewed, it is heavily leveraged and that’s why you’re going to have more volatility."
Significant Institutional Bitcoin Purchases
Echoing the positive sentiment from Fink and Bernstein, Strategy announced a substantial purchase of 10,624 Bitcoin on Monday, valued at $962.7 million, at an average price of $90,615 per coin. Andre Dragosch, Bitwise European head of research, noted this as the largest Bitcoin acquisition by Strategy since July 2025.
Technical Analysis and Price Consolidation
Despite Bitcoin's recovery from its November 21 low of $80,612, the price has remained largely confined within the $90,000 to $93,000 range. Aksel Kibar, a chartered market technician, observed this as part of a consolidation phase where Bitcoin might be seeking a bottom. He identified technical support levels between $73.7K and $76.5K, noting that similar short-term double bottoms took several months to form in the March-May period.
"This is part of the choppy price action where BTC/USD is possibly trying to find a bottom. Technical support is lower between $73.7K and $76.5K. It took few months in March-May period to form that short-term double bottom."
Market Dynamics and Trading Activity
Cumulative volume data from Hyblock indicates increased participation from investors trading between 0 to 100 BTC, often categorized as retail traders. Conversely, larger trade-size cohorts, ranging from 1,000 to 100,000 and 100,000 to 1 million BTC in cumulative volume delta, appear to be selling during rallies in the $90,000 to $93,000 price range.
Order book data for BTC/USDT perpetual contracts on Binance reveals a significant cluster of sell orders beginning at $90,000, with considerable volume accumulating between $94,000 and $95,000.
Furthermore, liquidation heatmap data shows short liquidity concentrated between $94,000 and $95,300. This zone could potentially provide fuel for a bullish push towards the $100,000 mark, contingent on market catalysts that stimulate increased spot or futures buying.
