Bitcoin Price Plunge: Market Panic or Once-in-a-Cycle Buying Opportunity?

Crypto markets reel as Bitcoin sheds 20% in a week—but veterans aren’t sweating.

Is this the big one? The 2025 Bitcoin correction has traders divided between ‘capitulation event’ and ‘fire sale.’

Fear vs. Greed:
Retail investors dump holdings while institutional wallets quietly accumulate. Sound familiar?

Liquidity crunch or leverage flush?
Derivatives data shows record short liquidations—but spot volumes suggest genuine panic selling.

The cynical take:
Wall Street always buys the rumor and sells the news… unless they’re doing the opposite.

One thing’s certain: nobody rings a bell at the bottom. Even the ‘smart money’ gets rekt sometimes.

In the last 24 hours, it slipped to around $97,597, pushing its 30-day decline to more than 11%. The charts show weakness, but behind the drop lies a very mixed and interesting story, one where some traders are selling, but bigger players are quietly buying. 

ETF Outflows Start the Downtrend

A major reason behind the bitcoin price Crash is the sudden wave of ETF outflows in the U.S. On November 13, spot Bitcoin ETFs recorded more than $600 million in outflows. When money leaves ETFs, the fund must sell real digital asset in the market, which creates instant pressure. If ETF outflows continue over the next couple of days, it may stay under selling pressure.

Long-Term Holders Are Quietly Selling BTC

Long-term holders are slowly selling as Optimism fades. Glassnode shows nearly 400,000 BTC offloaded recently, with whales reducing positions for year-end tax moves and profit-taking during weak market momentum.

Institutions Quietly Buy 4,094 BTC During the Dip

This kind of inflow usually shows confidence from long-term institutional players, even when the market is falling sharply.

Wintermute: Bitcoin Reacts More to Nasdaq Losses

Wintermute’s latest analysis adds a very important piece to the puzzle. They found that the token is still moving almost exactly like tech stocks, especially the Nasdaq-100. The correlation sits at around 0.8, which is extremely high.

The digital currency reacts more strongly to Nasdaq drops than to Nasdaq gains. This negative reaction pattern is now similar to the level seen in late 2022, which was followed by a major recovery. Today, even though Bitcoin is near all-time highs, the market is reacting emotionally to stock market weakness.

ALI Charts: These Are the Critical Support Levels

Analyst ALI Charts shared important BTC support levels after the breakdown below the $101,901 Fibonacci level. According to him, if it fails to stay above $95,930, the next strong support levels are:

• $82,045

• $66,900

These levels come from the URPD (Realized Price Distribution) model, which tracks where large groups of buyers entered earlier. If it tests these deeper levels, many long-term buyers may re-enter the market.

Weak Technical Indicators and High Liquidations Add Pressure

Technically, BTC is sitting under all major short-term moving averages. 

• The RSI is near 33, showing weakness but not extreme panic.

• A bearish MACD pattern suggests fading momentum. 

Liquidations made the fall worse - nearly 194,000 traders were liquidated in a single day, wiping out $719 million. The biggest single liquidation was a $10.46 million BTC long on Hyperliquid.

These forced sell-offs drove prices even lower.

Bitcoin Price Prediction: What's Next for BTC?

• It may continue to fluctuate between $94,000 and $102,000. 

• If the crypto remains above $97,000, buyers can try to pull off a recovery. 

A slip below $95,930 might give way to $94,000, and with growing fear, this may extend to as low as $82,000.

For 2025, the overall trend still looks positive. 

• While below $82,000, the long-term bull structure remains intact. 

• Overall, strong institutional inflows, growing ETF interest, and miner economics continue to point toward a strong future outlook; once the correction sets in, the price of BTC could head toward a range of $110K to $125K.

Conclusion

The bitcoin Price Crash does look scary at the moment, but the full picture is a lot more balanced. For the time being, the fear is high, and in crypto, high fear often creates some of the best long-term opportunities. 
This article is for informational purposes only, kindly DYOR before investing in crypto market.