Bitcoin’s price has plummeted to lows not seen in four months, dipping under the $100,000 threshold as market sellers gain the upper hand over buyers. Analysts are suggesting that the fallout from the sell-off on October 10 is coming to light, with indications that the price could sink further.
Key Insights:
- Bitcoin’s Value Drops to $100,800
- Forecasting Possible Bottom at $88,000 - $95,000 Range
Trading activity intensified on Tuesday, leading Bitcoin (BTC) to touch a new low of $100,800. Despite various unanswered questions regarding the driving forces behind this selling spree, there seems to be collective agreement among experts that Bitcoin’s future could see it testing lower levels, potentially stabilizing around $95,000.
Trader HORSE shared a chart suggesting a nearby bottom, cautioning that if $100,000 stands firm, it may not be a market trap. The liquidation heatmap from Hyblock indicates that leveraged long positions at the $100,000 mark could face a risk of liquidation, with liquidity thinning out as we approach $88,000.
BTC/USD. Source: Horse/X
In a contrasting viewpoint, Scott Melker has remarked on Twitter that Bitcoin has failed to maintain the 50-week moving average as support on four separate occasions in history, leading to concerns that it might soon test the 200-week moving average, currently situated around $55,000 and rising.
“Price is currently $700 above the 50MA. The 200 MA is sitting around $55,000 (and rising).”
BTC/USD 1-week chart. Source: The Wolf Of All Streets / X
Additionally, many industry professionals speculate that the damaging effects of the October 10 sell-off have heavily impacted numerous institutional investors, resulting in a staggering $20 billion in Bitcoin liquidations across the market. Overwhelming selling pressure on Tuesday is thought to originate from significantly affected funds that are yet unidentified.
Investors are advised to remain cautious, as real risks are inherent in trading and investment decisions, and thorough personal research is always recommended.
