Bitcoin has entered one of its most critical phases of the year as intense selling pressure briefly pushed the price below the $90,000 level, shaking market confidence and triggering widespread fear. Bears argue this breakdown marks the beginning of a deeper bearish cycle, with liquidity worsening and risk sentiment collapsing across global markets.Yet, despite the growing bear-market narrative, major players are signaling the opposite — long-term conviction. According to Lookonchain, El Salvador is aggressively buying the dip, reinforcing its commitment to Bitcoin even as volatility surges. Beyond its ongoing program of purchasing 1 BTC per day, the government executed a significant buy just a few hours ago, adding 1,090.19 BTC worth approximately $101 million to its holdings. This unexpected accumulation stands in stark contrast to the broader market panic.While retail sentiment remains fearful, moves like this highlight the growing divide between short-term traders reacting to price swings and strategic buyers focusing on long-term value. As Bitcoin hovers near key support levels, the market now faces a defining moment: capitulation or accumulation.El Salvador’s Bold Move Amid PanicEl Salvador’s unexpected Bitcoin purchase has added a dramatic twist to an already tense market environment. President Nayib Bukele shared a screenshot of the transaction and BTC holdings (7,474.37 BTC) on X, accompanied by a simple but telling caption: “Woa.”The message, brief yet powerful, instantly captured the attention of the crypto community. At a moment when fear is dominating sentiment and traders are scrambling for safety, Bukele’s reaction reflects a markedly different mindset — one grounded in conviction rather than panic.With Bitcoin breaking below $90,000 earlier today, many market participants interpreted the move as confirmation of a looming bear market. Liquidations surged, volatility spiked, and social sentiment hit extremes not seen since earlier corrections this year.Strong hands — long-term investors, sovereign entities, and institutional accumulators — are increasingly framing the recent pullback as a strategic entry point. This stands in stark contrast to short-term traders capitulating under pressure. Historically, such divergences have marked pivotal cycle moments where distribution flips to accumulation.Bitcoin Price Analysis: A Critical Breakdown Near Multi-Month LowsBitcoin’s latest price action shows a sharp deterioration in market structure, with BTC now trading near $91,000 after a steep rejection from the $110K–$115K region. The chart reflects a clear loss of momentum: lower highs, accelerating sell volume, and a decisive breakdown below the key 200-day moving average, a level that had acted as macro support throughout most of 2025.The most concerning signal is the clean break under $95K, a zone that previously served as a strong demand region during multiple pullbacks. Losing this level has opened the door to deeper downside, and BTC is now testing the next critical support area between $88K and $90K, marked by the 300-day MA and prior consolidation structure from early 2025.Volume has spiked on the sell-off, confirming that this is not a low-liquidity dip but a broad risk-off move. The pattern resembles a cascading liquidation event, with consecutive long squeezes intensifying the decline.Despite the bearish pressure, BTC remains above the broader bull-market base structure formed around $80K–$85K, meaning the macro trend isn’t fully broken yet. Still, bulls must reclaim $95K quickly to prevent momentum from slipping further.Featured image from ChatGPT, chart from TradingView.com