Bitcoin at a Crossroads: Key Support Test Looms After Correction

Following its October peak, Bitcoin has undergone a significant cooling-off period and is now engaged in a battle for stability. Investors are questioning whether the leading cryptocurrency has established a floor after a sharp correction of approximately 26%, or if further losses are imminent. As the price consolidates, institutional buying activity and expectations surrounding U.S. monetary policy are providing fresh catalysts for the market.

Strategic interest from corporate entities has persisted despite recent price weakness. A case in point is Lion Group Holding, which recently allocated around $8 million specifically for Bitcoin acquisition through a private placement. This move highlights how companies are leveraging lower price levels to add digital assets to their balance sheets for diversification. Demand via spot Bitcoin ETFs continues to serve as a stabilizing force, although inflows have moderated compared to the vigorous pace seen earlier in the year.

All Eyes on the Federal Reserve

The U.S. Federal Reserve is poised to play a decisive role in shaping Bitcoin’s trajectory for the remainder of the year. Markets are currently pricing in a probability exceeding 85% for an interest rate cut in December. While recent jobless claims data pointed to unexpected economic resilience, the prospect of lower capital costs continues to bolster risk assets. An easing of monetary policy would increase liquidity, potentially furnishing Bitcoin with renewed momentum in December.

On-chain metrics, meanwhile, reinforce a picture of market calm. Transaction volume has normalized, suggesting that a widespread investor capitulation is not occurring. Although long-term holders realized some profits near the highs, they continue to hold the majority of their coins.

Should investors sell immediately? Or is it worth buying Bitcoin?

A Market in Consolidation, Not Crisis

The euphoria of the third quarter has given way to a phase of reassessment across crypto markets. Bitcoin’s price is currently oscillating within a narrow range as it searches for definitive directional momentum. Trading at approximately $92,374, the asset remains well below its 52-week high of $124,773.

From a technical perspective, market participants are closely watching the $90,000 support level. A sustained break below this threshold could open the door to deeper declines, with analysts identifying a potential target zone around $80,000. On the upside, the area near $95,400 acts as the first significant resistance hurdle. Indicators like the Relative Strength Index (RSI) on shorter timeframes signal an oversold condition, which could favor a near-term counter-trend move.

The situation is coming to a head for traders. A decisive breakout above $95,400 or a breakdown below the $90,000 mark is likely to set the tone for the final weeks of 2025. Despite the current technical indecision, the fundamental backdrop—shaped by the impending Fed decision and sustained corporate accumulation—remains highly relevant.