Whale Buying Is No Longer a Bullish Signal—BTC Drops Below $90K Despite Heavy Accumulation

Bitcoin (BTC) is retesting a crucial support area after its price slid 5% from the recent highs and fell below the $90,000 barrier. Some analysts have suggested that the cryptocurrency’s structure remains intact, but warned that it must bounce quickly or risk retesting the November lows.

Bitcoin Retests $88,000 After Rejection

On Friday, Bitcoin lost the recently reclaimed $90,000 level, falling to a key support area before stabilizing. The flagship crypto has been attempting to recover from the November market correction, which sent its price to a seven-month low of $80,600.

Since reaching its local lows two weeks ago, the cryptocurrency has traded within a macro re-accumulation range, between $82,000 and $93,500, attempting to break out of this zone on Wednesday, when it reached a multi-week high of $94,150.

However, as the first week of December approaches its end, BTC has lost the upper area of its local range again, falling below its monthly open and tapping the $88,000 support.

Amid the drop, Analyst Ted Pillows noted that BTC has been struggling to reclaim the $94,000 resistance, adding that price “wants to go lower here before another breakout attempt.” Therefore, he suggested that a bounce back from the $88,000-$89,000 support zone is likely.

Altcoin Sherpa affirmed that the ongoing retest would confirm whether the recent bounce was “just lower highs and price is going lower or if we actually have any juice to bounce to like 100k or something.”

The analyst outlined two potential outcomes. In the first scenario, the flagship crypto would retrace to the $87,000-$89,000 area and bounce above the $93,000-$94,000 resistance levels.

In the second scenario, Bitcoin would continue to move sideways below the local resistance before eventually sliding to the November lows and potentially lower levels. Per the analysis, the leading cryptocurrency must bottom quickly, or it will risk the second outcome.

BTC Shows Shallowing Pullback Tendency

Analyst Rekt Capital also pointed out that Bitcoin continues to face rejection from the range high resistance. However, he considers that investors should not worry as long as the pullback isn’t as big as the previous ones.

If “the rejection is shallower than the previous two, then this resistance will continue to weaken until eventually breached,” he explained, adding that “as long as this weakening continues, BTC should be able to finally breach this resistance over time & try to challenge the multi-week Downtrend above.”

Earlier this week, the analyst affirmed that BTC’s consolidation structure will remain intact as long as Bitcoin closes the week above the range lows. He also noted that its Macro Downtrend, which “has been dictating resistance throughout this phase of the cycle,” remains the dominant structural barrier and the level to break.

As the price stabilized between the $88,500-$89,350 area, the analyst added that today’s retracement “continues to be a shallower pullback than the previous two,” which keeps the range “‘retrace shallowing’ tendency” intact.

He noted that Bitcoin could technically drop into the ascending two-week support trendline, or tap the $86,000 level and still perform a shallower correction than the recent 10% drop.

As of this writing, Bitcoin is trading at $89,400, a 2.9% decline in the daily timeframe.

Today, XRP stands out as the only cryptocurrency in the top 10 with a positive 24-hour volume change, reporting a +6.79% increase. All other major assets on the list, including BTC, ETH, SOL, BNB, DOGE, ADA and others, are still firmly in the red. This divergence is significant because rising volume into a declining market frequently indicates incoming volatility or accumulation.

XRP yet to catch up

However, the price reaction is not yet bullish: XRP is trading at about $2.05, following a daily decline of -4%, honoring a persistent declining channel and failing to recover any significant moving averages. The chart shows that XRP is still struggling below the downward-sloping 50, 100- and 200-day trendlines.  Chart by TradingView">

Sellers hit the asset as soon as it tests the upper boundary, and repeated attempts to break through midchannel resistance are unsuccessful. Nothing on the chart structurally points to a verified reversal, momentum (RSI) is still low and volume spikes are associated with rejection candles rather than breakouts.

XRP remains healthy 

However, the setup becomes more interesting when the on-chain performance reveals a different narrative. XRP is still in the one billion+ payments club because daily payments routinely surpass the threshold, indicating that network-level usage is not only robust but also growing. 

Metrics for successful transactions, payment volume and payment count have all maintained highs over the previous several months. This is an increase in fundamental activity rather than speculative noise, and historically, once macro pressure subsides, a divergence between price weakness and network strength tends to resolve in favor of fundamentals.

The concept that something is developing beneath the surface is further supported by exchange data. Exchange reserves hardly move, netflows stay under control and transaction counts continue to be high. This does not seem to be a panic distribution. Rather, it is like a market that is waiting for a catalyst while activity keeps building.

Despite the Bitcoin price recovery above the crucial $90,000 threshold—a level that has historically served as a supportive floor for the cryptocurrency—the market is exhibiting signs that a further correction may be imminent. 

Bitcoin Price Recovery At Risk?

Market expert Rekt Fencer recently shared insights on social media platform X, formerly known as Twitter, suggesting that the Bitcoin price might be forming what he calls a “massive bull trap.” 

This term refers to a deceptive bullish signal in which the price briefly surpasses a resistance level, in this case, the $90,000 mark, only to reverse into a decline. Such movements can entrap investors who bought in during the peak, leading to significant losses.

Fencer pointed out a troubling pattern reminiscent of early 2022 when Bitcoin reclaimed its 50-week moving average (MA)—currently positioned above $102,300—before experiencing a severe decline of roughly 60%, plummeting below $20,000 by June of that year. 

He indicated that the recent price recovery following major drops to $84,000 should not be interpreted as a signal of near-term success, especially since the Bitcoin price is currently trading under the 50-week MA.

If historical trends repeat, this could mean that Bitcoin might see a significant drop, potentially reaching around $36,200, which could potentially represent the low point of the bearish cycle for the cryptocurrency. On the other hand, there are analysts who retain a bullish outlook. 

BTC Bottom In Sight? 

Market researcher and analyst Miles Deutscher expressed a confident sentiment, stating he believes there is a 91.5% likelihood that the Bitcoin price has hit its bottom, based on his analysis of key developments. 

He noted that recent weeks have been dominated by negative news stories, including concerns surrounding Tether (USDT) and the implications of China’s actions on crypto, which he asserts often mark local price bottoms.

Moreover, Deutscher pointed out a shift in market flows from predominantly bearish to bullish. He explained that the trading environment has recently seen a resurgence in buying momentum, with large investors, or “OG whales,” ceasing their selling. This change has been reflected in the order books, indicating a possible stabilization in market sentiment.

Additionally, the liquidity landscape appears to be shifting, with market conditions tightening in recent months. The potential appointment of a new Federal Reserve chair known for dovish policies, coupled with the official end of quantitative tightening (QT), could further influence market dynamics in favor of buyers.

Deutscher concluded by emphasizing that given the extreme levels of fear, uncertainty, and doubt (FUD) in the market, combined with improvements in trading flows, he believes that the odds favor the notion that the Bitcoin price has indeed reached its bottom.

Featured image from DALL-E, chart from TradingView.com 

Fundstrat’s Tom Lee told attendees at Binance Blockchain Week that he believes the worst leg of the recent crypto slump is likely over and that markets may be ready for a gradual recovery. He pointed to weakening selling pressure and growing underlying activity as reasons for cautious optimism.

Market Sentiment May Be Near A Turning Point

According to Lee, mood on the street turned darker after October, with many investors showing fatigue after steady losses. He said the current selling looks closer to exhaustion than to the start of another major decline. Trading desks have cut back. Volume has thinned. Sentiment is low. Lee argued that often, when pessimism peaks, conditions for a reversal begin to form.

Bitcoin Drawdowns Are Not Uncommon

Based on reports, Bitcoin has fallen about 36% from its all-time high in the recent retreat. That size of drop has happened in prior cycles, including 2017 and 2021, and has been followed by rallies that reached new records.

Lee pointed to long-term returns for bitcoin and ether compared with some traditional assets over the last decade, saying crypto’s gains were larger. He used that history to support the idea that patient holders have been rewarded after past stress. Tokenization Could Be A Major Story In 2026

Lee also presented tokenization as a key theme for the future. He said large institutions are preparing to move more financial products on-chain and that, if real estate joins the shift, close to a quadrillion dollars in assets could eventually be tokenized.

Stablecoins were cited as an early example of why tokenized instruments can attract demand. He suggested that a broader institutional push could add steady interest to the market over time. BlackRock’s Bitcoin ETF Was Highlighted As A Signal

Reports have disclosed that BlackRock’s bitcoin ETF has become one of the firm’s top fee-earning products, a fact Lee used to show growing involvement from legacy finance. That kind of institutional participation, he argued, points to deeper engagement from big players who were previously on the sidelines.Adoption Gap Suggests Large Upside

According to Lee, only 4.4 million bitcoin wallets hold more than $10,000 in BTC, while nearly 900 million people globally have more than $10,000 in retirement savings.

He said that gap shows how early the market still is and argued that if just a fraction of those savers put money into bitcoin, adoption could expand by as much as 200 times. The figure is speculative, he acknowledged, but he used it to show the potential scale for future demand. What This Means For Investors Now

Lee questioned whether the old four-year cycle should be used as a strict guide. He suggested recent moves were driven more by de-leveraging and structural shifts than by the halving rhythm that shaped earlier cycles.

Featured image from Unsplash, chart from TradingView

The largest Ethereum wallet MetaMask is moving into the prediction market sector with an integration with Polymarket.

"You can now trade on the future outcome of real world events inside your wallet," Consensys' Gabriela Helfet wrote in a recent blog. "You’ll also earn MetaMask Rewards points with every prediction you make."

In addition to adding a new access point for Polymarket, the integration will enable users to fund their accounts using "any token on any EVM chain" via "one tap funding."

Polymarket has seen massive growth over the past year since first receiving mainstream exposure during the runup to the U.S. elections in November 2024. President Trump’s embrace of crypto and a softening regulatory outlook in the country helped foster continued growth for the platform, which recently received official approval to re-enter the U.S.

Founded in 2020, Polymarket is now reportedly courting a valuation of up to $15 billion, on the heels of receiving $2 billion in strategic funding from NYSE parent Intercontinental Exchange at a $9 billion valuation.

In October, MetaMask launched multichain accounts, a feature that allows users to manage both EVM and non-EVM addresses, including on Solana. The wallet is planning to integrate a native MASK token, as its parent firm reportedly plans for an upcoming IPO.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Strategy CEO Phong Le said part of the reason for establishing a $1.44 billion USD reserve was to alleviate investor concerns over the company’s health amid a Bitcoin slump. 

“We’re very much are a part of the crypto ecosystem and Bitcoin ecosystem. Which is why we decided a couple of weeks ago to start raising capital and putting US dollars on our balance sheet to get rid of this FUD,” said Le during CNBC’s Power Lunch on Friday.

On Monday, Strategy announced the $1.44 billion US dollar reserve, funded through a stock sale. The reserve is intended to maintain an amount sufficient to cover at least 12 months of dividends, and will eventually expand to cover a runway of 24 months, the firm said.

The new raise came amid concerns over whether Strategy could continue to service its debts and dividend payment obligations should the stock price fall too far.

“And it’s really this FUD,” Le said on Friday. 

“We weren’t going to have an issue to be able to pay our dividends, and we weren’t likely going to have to tap into selling our Bitcoin, but… There was FUD that was put out there that we wouldn’t be able to meet our dividend obligations, which causes people to pile into a short Bitcoin bet,” he said. 

“We just addressed that in eight and a half days we raised $1.44 billion — 21 months’ worth of dividend obligations, and we did it 1) to address the FUD, but 2) to show people that we’re still able to raise money in a Bitcoin downcycle.”

Related: Cantor slashes Strategy target by 60%, tells clients forced-sale fears are overblown

Last week, Le said that Strategy would only consider selling Bitcoin if its stock fell below net asset value and the company no longer had access to fresh capital. 

The company also launched a “BTC Credit” dashboard, which claims it currently has enough assets to service dividends for more than 70 years.