Bitcoin Plunges 20% in 3 Months as Year-Over-Year Loss Hits 10% - Here’s What Analysts Are Saying
Bitcoin's recent correction has traders asking: is this a buying opportunity or the start of something deeper?
The Short-Term Slide
A three-month decline of twenty percent paints a clear picture of recent pressure. The market's grappling with a cocktail of macro headwinds and profit-taking after last year's explosive run. That double-digit year-over-year loss stings for anyone who bought the top—a classic reminder that crypto moves in cycles, not straight lines.
Beyond the Price Charts
Forget the panic. These pullbacks are where foundations get tested and weak hands get shaken out. Network fundamentals haven't budged—hash rate remains near all-time highs, and institutional adoption is a one-way street. The real story isn't the price drop; it's who's still building during the dip.
The Long Game
Zoom out. Every major bull market in Bitcoin's history has been punctuated by violent corrections. This isn't 2018; the asset class has matured, with real-world utility and a regulatory framework slowly taking shape. The smart money isn't watching tickers—it's accumulating on weakness.
So, while traditional finance pundits cluck over quarterly returns, the crypto-native crowd sees a different chart. Volatility isn't a bug; it's the feature that creates generational wealth. Just ask anyone who sold during the last 'crisis.'
Bitcoin RSI Drops as Price Consolidates
CryptoQuant analyst Axel Adler Jr. highlighted that Bitcoin’s Relative Strength Index is currently at 43.67. This reading is well below the 12-month average of 67.3 and also under the four-year average of 58.7.
Recent performance points to a more widespread slowing down. Bitcoin has dropped about 20% over the last 3 months. It’s down about 10% from a year earlier, an indication that the earlier rally has stalled.
Adler notes that when the monthly RSI declines to a level below its long-term moving average, short-term corrections transform into extended bearish periods. This recent reading of bitcoin puts it near that risk zone.
The price action this week indicates market indecision. Earlier this week, it tested the psychological $90,000 level before settling back below that level. The price fell a bit on Tuesday before settling NEAR $87,000 on Wednesday.
Analysts say that if the selling pressure returns, the next key support is around $85,569. A consistent MOVE below that level may gain further downside.
According to SoSoValue data, spot Bitcoin exchange-traded funds registered a net outflow of $175.29 million on Wednesday. It was the fifth straight day of outflows since December 18.
Source: SoSoValue
ETF Outflows and On-Chain Gaps Add Pressure on Bitcoin
Sustained outflows at ETFs can often signal waning confidence from the market’s biggest players. It looks like institutions are de-risking rather than positioning for a bounce. Further withdrawals could put pressure on price stability in the weeks ahead.
Glassnode highlighted the UTXO Realized Price Distribution Track, where the current Bitcoin supply was last moved. Data indicates that there is very little supply concentration between the $70,000 to $80,000 level.
Source: Glassnode
Throughout the year 2025, investors have increasingly shifted their focus to conventional hard assets. Gold and Silver have recorded good rallies, and capital has been diverted out of risk assets.
Silver has skyrocketed to about $72 per ounce, a gain of about 148%, raising its market capitalization to more than $4 trillion. Gold has risen by almost 70% and is on track for one of its best years in history, overshadowing Bitcoin as investor sentiments change.
