Bitcoin falls below $100,000! After 470,000 investors get liquidated, is this a crisis or an opportunity?

Bitcoin experienced a significant decline on November 5th, dropping below the key psychological level of $100,000 for the first time since late June. According to data from the Gate platform, as of November 5th Beijing time, Bitcoin’s price was approximately $101,799.38, down over 7% in the past 24 hours.

This sharp drop triggered widespread forced liquidations, with over 470,000 traders liquidated globally in the past 24 hours. The total liquidation amount approached $1.8 billion, marking the highest single-day liquidation since August.

01 Price Movement: Bitcoin’s Volatile Swing

As of November 5th, Bitcoin’s price hovered at low levels, briefly falling below $99,000, with an intraday decline of nearly 2.5%.

Data from various platforms show a consistent downward trend. According to Gate’s market data, BTC is currently around $101,600, down 2.59% in the past 24 hours.

After hitting a low of $99,000, Bitcoin briefly rebounded to around $100,500, narrowing the 24-hour decline to 5.6%.

However, this decline was not purely one-sided; during the session, Bitcoin’s price briefly touched $113,600, indicating intense battle between bulls and bears.

02 Chain Reaction: Market Panic Spreads

The Bitcoin plunge triggered a chain reaction across the crypto market. Over 470,000 traders faced forced liquidations in the past 24 hours.

Long positions suffered heavy losses, accounting for over 90% of liquidations, meaning most investors had bet on continued price increases.

Panic extended beyond retail investors; institutional investors also showed caution. In the past week, Bitcoin spot ETFs saw net outflows of about $800 million.

Specifically, BlackRock’s iBit ETF experienced a single-day outflow of $400 million, the highest among 11 similar funds.

03 Causes of the Drop: Multiple Factors at Play

Federal Reserve Policy Shift

One of the main drivers behind the selling pressure was Fed Chair Jerome Powell’s hawkish comments. After the November policy meeting, he stated that a December rate cut remains “far from decided.”

This comment boosted the dollar index to a three-month high, and volatility in traditional financial markets subsequently impacted the crypto market.

Institutional Capital Divergence

Market capital flows also showed clear divergence. Over the past week, Bitcoin spot ETFs saw about $800 million in net outflows, while Ethereum spot ETFs experienced slight net inflows.

This divergence reflects differing attitudes among market participants toward various crypto assets.

Key Technical Levels Breached

Markus Thielen, founder of 10x Research, pointed out in a report that the $100,000 level is not only a psychological milestone but also a liquidation threshold for many leveraged positions.

As prices fell below $100,000, algorithmic trading programs triggered chain reactions of sell orders, amplifying the downward momentum.

04 Market Outlook: Diverging Expectations

Pessimistic Outlook

Ed Engel, an analyst at Compass Point, suggests retail investors may be less inclined to buy the dip as they have in previous cycles.

He noted in a report, “While long-term holders often sell during bull markets, retail spot buyers are participating less than in past cycles.”

Market analyst Damian Chmiel warned that if Bitcoin remains below $100,000, it could trigger sharper sell-offs, potentially pushing prices down toward the April lows of around $74,000.

Optimistic Sentiment

Despite the volatility, some institutions are taking advantage of the dip. A major investor who sold Bitcoin last November recently re-entered the market, purchasing 800 BTC at an average price of $106,060.

Several well-known Wall Street bulls remain optimistic. Tom Lee of Fundstrat predicts that despite recent turbulence, Bitcoin could surge to $150,000–$200,000 by the end of 2025.

05 Technical Analysis: Key Levels and Indicators

From a technical perspective, Bitcoin’s price continues to oscillate near the $100,000 mark, suggesting high volatility may persist in the short term.

The 21-week moving average is a key indicator to watch, as it has historically provided important support and resistance levels.

The Relative Strength Index (RSI) currently stands at 29, indicating an oversold condition, which could signal a potential rebound opportunity.

Investors should monitor the $118,000 resistance level closely and remain cautious of possible pullbacks.

06 Investment Strategies: Navigating a Volatile Market

Institutional Moves

Amid widespread panic, some institutions are quietly accumulating. Strategy firm recently announced it bought an additional 397 BTC.

They purchased at an average price of $114,771 per BTC, totaling approximately $45.6 million.

Retail Investor Approach

For retail investors, it’s advisable to adopt a cautious stance in the current uncertain environment, focusing on long-term trends.

Technical indicators show potential support levels, but short-term risks remain. Avoid reckless bottom-fishing, especially with high leverage.

Future Outlook

Bitcoin’s repeated oscillation around the $100,000 level reflects intense battle between bulls and bears. On one hand, institutional re-entries suggest long-term confidence remains; on the other, the continuous $800 million weekly outflows from US spot Bitcoin ETFs indicate short-term pressure persists.

Analyst Damian Chmiel warns that if Bitcoin stays below $100,000, it could trigger sharper declines, with the next target near the April lows of around $74,000.

While the road ahead is uncertain, prominent bulls like Tom Lee from Fundstrat remain optimistic, projecting a potential surge to $150,000–$200,000 by the end of 2025.