Bitcoin drops below $100,000, filling traders with “an almost biblical level of dread”
CoinMarketCap’s Fear and Greed Index is at 20, its lowest level since April and on the edge of “extreme fear.”
Bitcoin fell under $100,000 twice on Tuesday, the first time since June, filling investors with “an almost biblical level of dread,” according to Nic Puckrin, cofounder of Coin Bureau. Total crypto liquidations continued, totaling $1.6 billion in the last 24 hours, CoinGlass data shows. Meanwhile, CoinMarketCap’s Fear and Greed Index is at 20, its lowest level since April, on the edge of “extreme fear.”
The question now is, where does bitcoin go from here? While bitcoin recovered Wednesday, it’s still down double digits from its October 6 all-time high. As for bitcoin ETFs, outflows so far this week have already reached $763 million, per SoSoValue.
Citi analysts said bitcoin’s dip is due to a slew of factors, including ETF appetite and impaired flows, “a key factor to monitor,” as well as technical paralysis.
“Bitcoin is currently trading below its 200-day moving average, which may further suppress demand,” the analysts wrote in a note.
CryptoQuant analysts echoed the sentiment, saying in a report that bitcoin broke its key support level “that confirmed the 2002 bear market,” noting that the price of bitcoin is “below its 365-day moving average of $102K, a key technical and psychological support level.”
“The 365-day MA has acted as the ultimate support level so far this bull cycle, and was one of the last signals triggered as the bear market began in December 2021-January 2022. A failure to cross back above the 365-day MA quickly could trigger a much larger correction in Bitcoin’s price,” they said in a report.
Additional risk triggers include macroeconomic factors, a prolonged shutdown, and concerns around digital asset treasuries, all of which could further dampen risk appetite and drive bitcoin’s price lower.
Timothy Misir, head of research at Blockhead Research Network, also said that a loss of the $98,000 support level “signals structural shift toward bear phase; below $95,000 could trigger panic.”
However, some analysts remain upbeat, and while November seems “choppy” for bitcoin, they say the bull run is not over.
Puckrin told Sherwood News that though this sell-off is nerve-wracking, longer term, he still sees $150,000 as a likely top for this cycle.
“It will just be a bumpy ride from here, and this volatility will increasingly catch out traders on both sides of the fence. The selling pressure is coming from OG holders and from the prevailing economic uncertainty, but eventually it will stop, and the price will recover. The long-term fundamentals haven’t changed — liquidity and further rate cuts are still coming,” he said.
