Synopsis: Bitcoin fell below $100,000 for the first time since June, fueled by heavy selling and shaken investor confidence, raising fears of continued declines and increased market volatility
Bitcoin plunged below $100,000 for the first time since late June, rattling the digital asset market and leaving many investors nervous about what comes next. The drop, which took place as sellers overwhelmed buyers, has put both retail and institutional players on edge.
In the wake of October’s harsh sell-off and persistent investor uncertainty, the cryptocurrency world is abuzz about where prices could go from here.
Selling Pressure Intensifies
Tuesday saw Bitcoin’s price fall sharply to a four-month low of $100,800 before briefly dipping under the critical $100,000 level. Analysts pointed out that sellers, possibly spurred by last month’s massive $20 billion crypto market liquidation, are leading the rush for the exit.
Charts show that leveraged buyers at $100,000 are especially at risk, and market veterans now warn that Bitcoin could potentially tumble to $95,000 if support fails. In my view, the intensity of the sell-off almost feels like it’s feeding on itself.
Popular trader HORSE noted that psychologically important round numbers, such as $100,000, often act as magnets for selling pressure. If the price doesn’t rebound quickly from here, a “trap” for hopeful buyers may set in, possibly driving Bitcoin even lower.
Technical Breakdowns and Analyst Warnings
Some prominent voices in the crypto community point to technical factors. Scott Melker, a respected trader, commented that Bitcoin has now lost a critical technical support the weekly 50-day moving average a level breached only four times before in Bitcoin’s history. This signal has usually foreshadowed further drops, with prices testing the 200-day moving average, which now sits near $55,000 and is rising.
According to other experts, large investment funds deeply affected by the October 10 market crash are now being forced to liquidate positions.
Tony Stewart, an options trader, highlighted that these substantial institutional and professional investors might be behind the heavy selling. Their distress could mean additional downward pressure on prices in the short term. Personally, it’s worrying to see big players retreating, as their moves usually shape the market direction.
Risk-Off Mood Spreads Across Markets
Bitcoin’s fall comes at a time when most crypto investors seem exhausted and increasingly cautious. Many retail traders aren’t stepping in to “buy the dip” as much as in prior cycles, according to analysts.
Ed Engel, an analyst at Compass Point, mentioned that the absence of eager spot buyers is making things tougher for bulls, especially since long-term holders are still selling. The sense is that, if short-term holders also get spooked and sell, there could be even sharper declines.
Outside of cryptocurrency, investors dumped AI-linked technology stocks too, adding to the market’s risk-off mood. The Nasdaq Composite dropped more than 1% the same day, and high-flying companies like Palantir saw their shares hit hard over concerns about lofty valuations.
Support Levels and the Road Ahead
With Bitcoin trading around $101,000 after the fall, market participants are closely tracking the $95,000 support level, seen as the next possible floor if current selling persists. Some analysts believe that, unless a positive catalyst emerges soon, Bitcoin could keep trending downwards for a while longer, possibly headed to test even deeper supports.
October’s typical upside for cryptocurrencies known as “Uptober” did not show up this year. Instead, the past month was one of the most volatile in recent memory, weakening confidence among individual and institutional buyers. It’s a sobering moment. While past crypto downturns have always ended in recoveries, this cycle feels uniquely uncertain.
Overall, the prevailing sense is that, unless something shifts dramatically, markets are bracing for more turbulence. For anyone observing the space, now might be a time for extra caution and patience.
Written By Fazal Ul Vahab C H