Market Pauses: Bitcoin Price Dip Tests $90K Support Level
The January momentum has hit a speed bump. A notable Bitcoin price dip has pulled BTC below the crucial $90,000 psychological support level, erasing a portion of the week’s early gains. This 2% drop coincides with a significant shift in institutional flows, as U.S. spot Bitcoin ETFs recorded their largest single-day outflow of 2026 at $486 million.
This marks the second consecutive day of net redemptions, a clear pause following the explosive $697 million inflow day just last week. The selling was broad-based, with only BlackRock’s IBIT managing to attract fresh capital. Analysts like 0xNobler suggest this move is a deliberate “leverage flush,” where large players push price down to liquidate over-extended futures positions—a healthy, if painful, reset for the market structure.
Bullish Foundations Remain Despite Bitcoin Price Dip
However, look beneath the surface, and the bullish thesis remains intact. This Bitcoin price dip is occurring against a backdrop of powerfully positive developments. Macroeconomic conditions are softening (evidenced by weaker JOLTS data), which supports the case for future Fed rate cuts—a historic tailwind for crypto.
Furthermore, institutional adoption is accelerating, not slowing. Morgan Stanley’s recent ETF filings and relentless corporate accumulation from firms like Strategy demonstrate that strategic, long-term demand is still building. This price action looks more like a short-term sentiment shift and technical correction within a longer-term institutional accumulation phase.
My Thoughts
This is a classic bull market pullback, not a trend reversal. The ETF outflow is concerning in the short term but is likely profit-taking and rotation after a sharp run-up. The critical level to watch is the $88,500 area (the prior weekly open and consolidation zone). If that holds as support, this dip will be remembered as a buying opportunity before the next leg up, fueled by the very institutional pipelines that are still being built. The macro and adoption narratives are stronger than a two-day flow print.
