Bitcoin extended its recent slide on Tuesday, plunging below $100,000 for the first time in four months as intensified selling pressure swept through the market.
Analysts say the move could mark the beginning of a deeper correction, with some pointing to potential targets between $88,000 and $95,000.
The sell-off follows weeks of spot Bitcoin ETF outflows and waning momentum after months of record highs. Market data from Hyblock shows a cluster of leveraged long liquidations around the $100,000 mark, suggesting that traders betting on a rebound are being flushed out.
Below that level, liquidity appears thin until the high-$80,000 range, potentially paving the way for further downside.
Popular trader HORSE noted that if $100,000 fails to act as a “trap” — a false breakdown before a reversal — the next major support lies closer to $95,000. “Big round numbers like $100K often attract traders, but once broken, they can accelerate moves in either direction,” HORSE said.
Meanwhile, analyst and trader Scott Melker pointed out that Bitcoin has lost its 50-week moving average support only four times in history, each instance leading to a test of the 200-week average. Currently, the 200-week MA sits near $55,000 and is gradually climbing.
Some market observers attribute the latest sell-off to institutional distress following the sharp correction on October 10, which wiped out over $20 billion in Bitcoin positions.
Options trader Tony Stewart suggested that “crippled funds” may be offloading assets to rebalance their portfolios.
“There are likely large firms under significant pressure, the kind that others in the market can already sense,” he said.
As of the latest market data, Bitcoin is trading at around $101,696, attempting to stabilize after its sharp decline below the $100,000 threshold.
