Bitcoin’s Sudden Plunge Below $100K: What’s Really Going On?
Bitcoin has taken a dramatic turn, dipping below the $100,000 mark for the first time in four months, leaving investors and analysts alike scrambling to make sense of the downturn. But here’s where it gets controversial: while some see this as a temporary correction, others argue it’s the beginning of a deeper decline. Could this be the moment Bitcoin’s momentum falters, or is it just another buying opportunity in disguise?
Key Insights Unpacked:
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The Sell-Off Intensifies: Bitcoin’s price plummeted to $100,800 on Tuesday, with sellers capitulating and spot BTC ETF outflows on the rise. This isn’t just a minor dip—it’s a significant shift that has analysts divided. While some are puzzled by the exact triggers, there’s a growing consensus that BTC could drop further, potentially finding a bottom between $88,000 and $95,000.
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Technical Signals to Watch: Popular trader HORSE shared a chart suggesting that if $100,000 doesn’t hold as a trap, the next levels to watch are in the $88,000 to $95,000 range. HORSE explains, ‘Big round numbers like $100K often get front-run, and if they’re breached, they can get smoked on the return just like on the way up.’ Meanwhile, liquidation heatmap data from Hyblock reveals that leveraged long positions at $100,000 are at risk, with thin liquidity until $88,000.
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Historical Patterns Repeat?: Crypto trader Scott Melker pointed out a troubling historical trend: Bitcoin has lost its weekly 50-MA (moving average) as support four times in the past, and each time, the price eventually tested the 200-MA. With the 200-MA currently around $55,000 (and rising), could Bitcoin be headed for a steeper fall? Melker’s cryptic tweet leaves room for interpretation, but the data is hard to ignore.
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The October Sell-Off’s Lingering Impact: A prevailing theory circulating on social media is that the October 10 crypto market crash, which liquidated $20 billion in Bitcoin positions, left many professional and institutional investors reeling. Analysts like options trader Tony Stewart suggest that these crippled funds may be behind Tuesday’s massive sell-off. Stewart notes, ‘There are likely large firms now seeing the blurred body image underwater,’ implying that more selling pressure could be on the horizon.
The Bigger Question: Is This a Buying Opportunity or a Warning Sign?
While this article doesn’t offer investment advice, it’s clear that Bitcoin’s current trajectory is sparking heated debates. Are we witnessing a temporary shakeout before the next rally, or is this the start of a prolonged downturn? And this is the part most people miss: the October crash may have created a domino effect, with institutional players still unwinding their positions. Could this mean further volatility ahead?
Your Turn to Weigh In: Do you think Bitcoin will rebound from here, or is the $55,000 level the next stop? Are institutional sell-offs the real driver of this decline, or are there other factors at play? Share your thoughts in the comments—let’s spark a discussion!