Author of the news: Crypto Emergency
Bitcoin has been trading in the range of $84,200–$93,500 for several weeks, failing to hold above the upper boundary. On December 15, the price dropped to $85,129 on Binance — this is a correction of 22.7% from the historical maximum in October.
Mass sales or market mechanics?
Web3 developer Tracer reported large transactions from major players. According to him, Binance sold 4,173 BTC, Coinbase — 2,370 BTC, Wintermute — 1,526 BTC, and BitMEX — 7,516 BTC. As a result, the market received an offer of bitcoins worth over $2 billion.
Some analysts refer to the ongoing situation as an 'organized dump', but such movements are often explained by ordinary market dynamics: large holders and market makers regularly adjust positions in response to demand, liquidity, and technical signals.
Technical indicators suggest a reversal
Trader Michael van de Poppe noted a rare signal: the relative strength index (RSI) of Bitcoin to gold fell below 30 - only the fourth time in history. Previously, such instances coincided with significant price lows (2015, 2018, 2022).
'Gold is overvalued relative to Bitcoin, and soon capital will begin to flow into cryptocurrency,' says the analyst. He also pointed out the gap between the current price and the 20-week moving average.
Liquidity is increasing, but BTC is responding weakly
According to trader Daan Crypto Trades, Bitcoin shows a weak correlation with global liquidity. This may be related to sales within the four-year cycle and tax loss harvesting at the end of the year. The first months of 2026 will be a test: will BTC break out of its usual cyclicality.
Moving averages are converging
Analyst Rekt Capital noted the convergence of the 21-week and 50-week EMA. Their crossing is expected in mid-January and has historically signaled short-term recovery phases before a new decline.
Conclusion
Bitcoin remains within an established corridor, and the market is not yet ready for sustainable growth. Technical indicators indicate possible reversals, but the final answer will come from the market in the first quarter of the new year.
AI Perspective
The current correction may reflect not the weakness of the asset, but the rebalancing of institutional investors' portfolios before the new tax year. December traditionally becomes a month of technical sales, creating pressure on risk assets. The increase in institutional share alters usual market patterns, and Bitcoin may be in a phase of forming new pricing mechanisms.
