Bitcoin, after reaching an all-time high of $108,365 on December 17, has been continuously pulling back. It faced significant selling pressure around 23:00 on the evening of December 30th, breaking below $92,000 to a low of $91,540. Although it briefly rebounded to $95,000, it quickly fell back again, trading at $92,400 at the time of writing, with a 24-hour drop of 1.07%.

MicroStrategy Adds $209 Million in Bitcoin

Despite the ongoing dip in Bitcoin's price, Michael Saylor, founder of MicroStrategy, the leading holder of Bitcoin among U.S. public companies, announced on Twitter that MicroStrategy had bought an additional 2,138 BTC at a total cost of $209 million, with an average price of about $97,837 per BTC, showing no concern about whether Bitcoin has reached a short-term peak.

According to the latest data from Bitcoin Treasuries, after this purchase, MicroStrategy now holds 446,400 BTC, costing them $2.79 billion in total, with an unrealized profit of approximately $1.3 billion. (Just this year, MicroStrategy has spent $2.2 billion to acquire 257,250 BTC.)

Bitcoin Net Flow and Reserve Ratio Hit New Lows on Exchanges

While the recent pullback has raised concerns about market uncertainty among investors, the Bitcoin net flow-to-reserve ratio on exchanges is signaling positive developments. This indicator shows that more Bitcoin is being withdrawn from exchanges than deposited, suggesting investors are more inclined to hold Bitcoin in cold storage for the long term rather than trading actively, which typically signals an upcoming price increase.

Historically, this metric reached a notable peak at the end of the 2022 bear market, when some of the "smart money" was actively moving Bitcoin into wallets for storage. This accumulation phase marked the bottom of the bear market and set the stage for the following bull run. As exchange reserves continue to decrease, the market's upward momentum is building, potentially supporting a bullish outlook for the future.

Bitcoin's Key Support at $90,000

However, if Bitcoin fails to rebound above $100,000 in the short term, it might continue to explore lower levels due to lack of upward momentum, with the most critical support level at $90,000. If Bitcoin finds strong support around $90,000, it could lead to a new wave of increases; if it falls below this level, a deeper correction might be on the horizon, potentially dragging the entire crypto market into a more severe downturn.

Disclaimer: None of the information contained here constitutes an offer (or solicitation of an offer) to buy or sell any currency, product or financial instrument, to make any investment, or to participate in any particular trading strategy.