The cryptocurrency world is currently experiencing significant volatility. The price of Bitcoin (BTC) has fallen below $100,000, losing approximately $450 billion in value since early October. Investors and traders are both concerned about this rapid price decline. Heavy selling, weak ETF inflows, and growing uncertainty in global markets have exacerbated this decline.
Why is Bitcoin’s price falling
Spot Bitcoin ETFs recently saw $278 million in outflows. Long-term investors sold approximately 815,000 BTC in the past 30 days, the largest long-term sale since January 2024. These sales created additional pressure in the market, as institutional buyers withdrew.
Also, over $553 million in crypto positions were liquidated in the past day, of which $273 million was linked to BTC longs alone. The $4.04 billion BTC options expiry on November 14th further pressured the market. Traders are now cautious.
Technical Signals and Potential Support Levels
Bitcoin’s price fell below the 200-day simple moving average (SMA) at $108,365 and also broke the 78.6% Fibonacci retracement level at $101,901. The RSI has dropped to 36, close to oversold territory, while the MACD histogram has reached -362, indicating a strong bearish bias. The next critical support is at $97,045, and if it breaks, the price could fall to $92,000.
Global Economic Pressures and Investor Concerns
In addition to technical factors, global economic pressures are also driving the market decline. US technology stocks are falling, bond yields are volatile, and investors are uncertain due to delays in key economic reports. Uncertainty about the future of the Federal Reserve’s rate policy has impacted every high-risk investment, including crypto.
Bitcoin miners also contributed to the sell-off. In recent weeks, miners sold 1,200 BTC, generating $119 million in losses. However, the network hashrate remains strong at 72 EH/s, suggesting that overall miner health is stable.
Options Market and Investor Strategy
Investors in the options market have become more cautious. Put contracts at strikes of $95,000 and $90,000 have seen significant interest. Investors are now focusing on safety, not bullishness. Deribit data shows that downside hedging has reached its highest level in recent months.
Bitcoin’s drop below $100,000 is not just a psychological level but also reflects weakened investment confidence in the entire crypto ecosystem. Institutional demand is declining, fears in the derivatives market are growing, and global economic pressures are intensifying. The coming weeks will determine whether Bitcoin stabilizes or plunges deeper into a downturn.
F&Q
Q1: What is Bitcoin’s next support level?
A1: According to technical analysis, the next critical support is at $97,045, followed by $92,000.
Q2: Is this decline limited to Bitcoin?
A2: No, the broader crypto market is also under pressure, and many crypto-linked stocks have seen sharp declines.
Q3: What precautions should investors take right now?
A3: Investors should pay attention to investor protection and avoid high-risk investments at this time.
Disclaimer: This article is for informational purposes only. It is important to consult a financial advisor before investing.
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