Bitcoin Dips Under $100K as Pressure Builds

Bitcoin has once again entered a turbulent phase, with the bitcoin price dropping below the significant threshold of $100,000. This sudden fall marks the lowest level for bitcoin in the past four months and has sparked intense discussion across the bitcoin community. Traders and analysts are now trying to understand what is truly driving this sharp decline in bitcoin value and whether the current movement signals a deeper correction or merely a temporary pullback before the next bitcoin rally.

On Tuesday, selling pressure on bitcoin intensified dramatically. The bitcoin market saw buyers being overwhelmed by an influx of sellers, leading bitcoin to touch lows around $100,800. Despite widespread speculation, there is still no clear agreement among analysts about the precise reasons for the fall. However, a general consensus is emerging that the bitcoin price could continue to slide downward, possibly finding its next major support somewhere between $88,000 and $95,000.

A well-known trader known as HORSE shared a chart indicating that this zone could represent the bottom if the $100,000 level does not act as a “trap.” According to him, large psychological price points, such as $100K, often attract aggressive market reactions. He warned that when bitcoin trades around such round numbers, it can trigger both panic selling and sudden rebounds, leading to sharp volatility in bitcoin trading behavior.

Data from the Hyblock liquidation heatmap shows that leveraged long positions for bitcoin at the $100,000 level are under significant threat. Once those are absorbed, the liquidity remains thin until the $88,000 mark, suggesting bitcoin might continue falling before finding firm support. Traders and investors watching bitcoin closely are preparing for this potential move and recalibrating their risk management strategies accordingly.

At the same time, prominent trader and crypto commentator Scott Melker pointed out that bitcoin has lost the weekly 50-day moving average (MA) support only four times in history. Every time this happened, bitcoin eventually tested the much lower 200-day MA. Melker emphasized that currently, the bitcoin price sits about $700 above the 50MA, while the 200MA is near $55,000 and steadily rising — implying that a deeper correction could be on the horizon if the pattern repeats.

Adding another layer of intrigue, a theory circulating among bitcoin experts suggests that the major crash on October 10 triggered massive liquidations, wiping out over $20 billion worth of bitcoin positions. Analysts believe that several professional and institutional investors suffered huge portfolio losses during that event, which may have forced further bitcoin sell-offs this week. Options trader Tony Stewart argued that these weakened entities are the hidden drivers behind the ongoing selling pressure in the bitcoin markets. He described the situation as “seeing the blurred bodies underwater,” hinting that certain big firms are now under severe financial stress due to their overexposure to bitcoin.

Overall, bitcoin seems to be navigating one of its most uncertain phases in recent memory. Traders remain cautious but hopeful that bitcoin can recover once the selling exhaustion fades. Yet, the repeated signals of weakness and liquidation make it clear that bitcoin still has to prove its resilience in the face of mounting pressure and uncertainty across global markets.