Understanding the Recent Bitcoin Price Drop: From $124K to $84K

Summary:
Recent analysis by CryptoQuant sheds light on the factors behind Bitcoin's significant price drop from around $126,000 to a low of $84,000. Whale capitulation, particularly the realized losses from large holders, contributed significantly to this decline. As the situation evolves, market analysts hold differing views on Bitcoin's potential recovery.

Key Takeaways:

Bitcoin has faced a price decline from $126,000 to $84,000 due to whale capitulation and market pressures.
Newer large holders, or whales, intensified selling as prices dropped, leading to substantial realized losses.
Market conditions have recently stabilized, but analysts are divided on the future price trajectory of Bitcoin.
Key resistance and support levels are critical indicators for potential movements in Bitcoin's price.

Bitcoin's Price Fluctuation: An Overview

A recent analysis from CryptoQuant has identified key factors contributing to Bitcoin's price movements, which have now shown signs of stabilization. After peaking at approximately $126,000 in early October 2025, Bitcoin faced a pullback that saw it stabilize briefly around $124,000. Unfortunately, this stability was short-lived, with prices steadily declining to a low of $84,000 by December, representing a drop of over 32% in just three months. Although Bitcoin has bounced back slightly to around $87,000, it remains nearly 30% off its previous high.

The prolonged downturn occurred during a broader bearish trend that has affected the entire cryptocurrency market from early October to December.

Impact of Whale Capitulation on Bitcoin's Price

New insights from CryptoQuant suggest that the behavior of large holders, often referred to as whales, was a significant factor in the recent price decline. The platform's analysis indicates that losses incurred by newer whale investors played a crucial role in driving Bitcoin's prices lower.

As Bitcoin fell from $124,000 to $84,000, these whales recorded increasing realized losses, which applied sustained pressure on the market. Following Bitcoin's recent low, these losses began to decrease sharply, indicating a slowdown in aggressive selling from these holders.

CryptoQuant's charts revealed early signs of whale capitulation starting in October, though they were relatively muted at that time. Combined profits and losses fluctuated between $200 million and $100 million.

Realized Profits by Bitcoin Whales | CryptoQuant

As Bitcoin's price fell further later in October, selling activity ramped up considerably, predominantly driven by new whales. On certain days, realized profits surged to as much as $400 million.

Shifting Conditions and Potential Recovery

By November, conditions began to change as Bitcoin dipped below the $100,000 threshold. Despite increased selling pressure, new whales shifted from booking profits to absorbing significant losses. This transition resulted in pronounced capitulation events, with realized losses peaking around $600 million on select days throughout the month. CryptoQuant attributes these heavy losses to the dramatic price collapse seen during this period.

In December, a noticeable reduction in selloffs driven by whales was observed. With capitulation easing, Bitcoin entered a relatively stable phase, with prices consolidating between $87,000 and $90,000. The reduction in selling from new whales may provide the market with an opportunity to stabilize and potentially recover if large holders start returning as buyers.

Analyst Perspectives on Bitcoin's Future

Despite recent improvements, not all analysts predict that Bitcoin will see an immediate turnaround. Veteran trader Peter Brandt expressed caution, indicating that Bitcoin could still face further declines. He pointed to historical data showing that each major parabolic price increase in Bitcoin's 15-year history has typically been followed by corrections of at least 80%. He suggests the current correction may not yet be fully complete.

Bitcoin 1W Chart | Peter Brandt

In contrast, analyst Michael van de Poppe noted that Bitcoin recently faced rejection at a significant resistance level near $90,000, causing it to trend sideways. Despite this setback disappointing some traders, he observed potential signs of an upward trend in shorter timeframes. He pointed out that the $86,000 level is critical support, and maintaining above this threshold could enhance Bitcoin's chances of breaking through major resistances.

Bitcoin 12h Chart | Michael van de Poppe

Van de Poppe also highlighted the unusual state of the market, noting that while many traditional markets are experiencing rallies, the crypto sector is lagging behind. Nevertheless, he believes that this situation may evolve over time.

Disclaimer: This content is for informational purposes only and should not be considered financial advice. The views expressed herein are those of the author and do not necessarily reflect the opinion of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.