Bitcoin price fell to 4-month lows below $100,000 as sellers completely overwhelmed buyers, and analysts speculated that “dead bodies” from the Oct. 10 sell-off are finally beginning to surface.
Market Analysis
Key points:
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Bitcoin falls to 4-month lows below $100,000 as sellers capitulate and spot BTC ETF outflows increase.
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Traders pinpoint the $88,000 to $95,000 range as a potential bottom.
Bitcoin () selling intensified on Tuesday as BTC abruptly fell to 4-month lows of $100,800. While analysts across the space appear to be scratching their heads about the exact reasons for the current selling, there is consensus that BTC price could slip lower, possibly bottoming around $95,000.
Popular trader, HORSE, traded the following chart and suggested a bottom could be approaching, if $100,000 proves not to be “a trap.”
“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.”
Liquidation heatmap data from Hyblock shows leveraged long positions at $100,000 are at risk of absorption, followed by relatively thin liquidity until $88,000.
On the other hand, crypto media personality and trader Scott Melker posted a cryptic tweet, noting that Bitcoin “has definitively lost the weekly 50-MA as support 4 times in history,” and Melker noted that every time BTC price lost this moving average, “price went on to test the 200-MA.”
Melker said,
“Price is currently $700 above the 50MA. The 200 MA is sitting around $55,000 (and rising).”
Another prevailing theory making the rounds on X is that a range of professional and institutional-level entities saw their portfolios crippled by the Oct. 10 crypto market sell-off, which resulted in $20 billion in Bitcoin positions being liquidated and an even larger figure across the total market.
Analysts like options trader Tony Stewart have that these crippled funds are the source of Tuesday’s overwhelming selling across Bitcoin markets and that while the entities remain unknown at the moment, “there will by now be large firms that can see the blurred body image underwater.”
In the post, Stewart explains how to pinpoint which funds are under duress and what this could mean for Bitcoin price going forward.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
