Bitcoin Price drops below $100K as analysts warn of deeper fall

Bitcoin Price slipped to new four-month lows this week, falling under the key $100,000 level. On Tuesday, BTC traded near $100,800 as selling intensified, wiping out recent gains and sparking fears of a deeper correction. Analysts across the crypto space agree that while the exact cause of the drop is unclear, Bitcoin may not have found its bottom yet. Many now expect potential support between $88,000 and $95,000.

The $100K mark has long been a psychological barrier for investors. Once broken, such major round numbers often trigger panic selling or forced liquidations. This week’s decline suggests that confidence in short-term momentum is weakening, even though long-term sentiment remains cautiously positive.

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The chart below from CoinMarketCap highlights Bitcoin Price movement over the past month, showing the gradual shift from bullish strength to the recent downturn. After holding above the $105,000 mark for most of October, BTC began losing momentum as selling pressure increased across exchanges. The decline accelerated in early November, pushing prices below the key $100K level for the first time in four months. This visual trend underscores the growing caution among traders and reflects broader volatility in the crypto market as investors reassess short-term expectations.

Analysts eye key support levels for Bitcoin Price

Prominent trader HORSE shared his market view on X, noting that Bitcoin might be nearing a bottom, if $100,000 does not turn out to be a “trap.” In his words, “Maybe you get a trap at this low, but if not, these are the levels I am looking toward for Bitcoin. You want to see $100K get front ran because big round numbers like that, if traded, get smoked on the return just like on the way up.”

Data from Hyblock supports his outlook. According to the platform’s liquidation heatmap, leveraged long positions around $100,000 are highly vulnerable. Below this level, liquidity appears thin until about $88,000, meaning if prices drop further, the next wave of buy orders may not appear until Bitcoin trades near that lower range.

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Bitcoin Price loses key technical support levels

Crypto analyst Scott Melker, known as “The Wolf of All Streets,” pointed out that Bitcoin has now lost the weekly 50-MA as support, a development that historically leads to further downside. “Bitcoin has definitively lost the weekly 50-MA as support four times in history,” Melker explained, adding that each time this happened, the price later fell to test the 200-MA.

He further noted, “Price is currently $700 above the 50MA. The 200-MA is sitting around $55,000 and rising.” The comment raised concerns that Bitcoin Price could continue declining until it tests deeper technical levels.

Losing the 50-week moving average is significant. It often signals that long-term momentum is weakening and that a deeper correction phase might be underway. While not everyone agrees on how far the drop could go, most traders acknowledge that reclaiming $100K as support will be crucial for any sustained recovery.

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Institutional pressures and Bitcoin Price weakness

Another theory circulating in trading circles ties the recent fall to institutional stress. On October 10, the broader crypto market experienced a massive sell-off that liquidated over $20 billion worth of Bitcoin positions and even larger amounts across other assets.

Options trader Tony Stewart believes that certain professional or institutional funds may still be under financial pressure due to those losses. He suggests that these stressed funds could be driving the latest wave of selling. In his post, Stewart explained how to identify which funds might be struggling, hinting that while their identities remain unclear, “there will by now be large firms that can see the blurred body image underwater.”

This kind of institutional liquidation tends to trigger cascading effects across exchanges. When large positions are closed or hedged, liquidity evaporates quickly, leading to abrupt price swings, exactly what the Bitcoin Price experienced this week.

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ETF outflows and fading market confidence

Adding to the pressure, spot Bitcoin ETFs have seen notable outflows over recent days. Analysts view this as a sign of short-term investor hesitation. When investors withdraw funds from ETFs, it often leads to direct selling in spot markets, amplifying price drops.

This pattern has appeared during past Bitcoin corrections as well. Heavy ETF redemptions typically occur when traders lock in profits or hedge against uncertainty, suggesting that some investors are waiting for clearer signals before re-entering.

Despite these setbacks, several analysts emphasize that such corrections can help cleanse the market. By flushing out excessive leverage and speculation, they argue, Bitcoin becomes more stable for the next upward phase.

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What to expect next for Bitcoin Price

With prices now hovering near $100K, attention is shifting to whether Bitcoin can stabilize or if more downside awaits. Many traders are focusing on the $88,000–$95,000 range as a potential base. Historically, similar retracements have given long-term investors attractive entry points.

However, analysts warn that recovery might not happen quickly. A mix of institutional selling, ETF withdrawals, and technical weakness could keep volatility high. If Bitcoin fails to reclaim the $100K level soon, the next critical test could occur near the 200-MA around $55K, as highlighted by Melker.

Conversely, if the Bitcoin Price bounces back above $100K and holds, confidence could rebuild quickly. In that case, traders may start targeting $110K and $120K as the next resistance zones.

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The long-term view remains cautiously bullish

While the short-term outlook appears shaky, many long-term investors remain confident. Historically, Bitcoin has recovered from similar drawdowns, often rebounding to new highs after periods of consolidation. Factors such as institutional adoption, improving regulations, and the upcoming Bitcoin halving continue to support bullish expectations.

That said, traders should approach the market carefully in the coming weeks. Risk management and patience are essential while volatility remains elevated. As Bitcoin navigates this turbulent phase, the next few weeks could determine whether the correction deepens or marks the start of another long-term rally.

In the end, despite near-term pressure, Bitcoin Price continues to represent the broader story of digital scarcity and decentralized finance. Every downturn has, so far, been followed by renewed strength, and analysts believe this cycle will be no different.

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