- Bitcoin price tumbled 3% to $99,364 amid a 26% spike in trading volume, marking a 21% correction from October’s $125K peak.
- Major players like BlackRock and Binance offloaded $1.5B in BTC, triggering short-term selling pressure despite ongoing ETF inflows of $450M this week.
- With RSI near oversold and MACD turning bearish, Bitcoin risks dipping to $95K before a potential rebound to $108K or even $130K if market sentiment flips.
Bitcoin price has dropped 3% in the last 24 hours to trade at $99,364 as of 6:21 a.m. EST on a 26% surge in trading volume to $76 billion. BTC’s meteoric rise through 2025 hit a speed bump this week, plunging below the psychologically pivotal $100,000 mark for the first time since early summer. As of Thursday’s close, BTC/USD settled at $99,364, shedding over 21% from its October peak of $125,761.31.
Trading volume spiked 26%, signaling heavy capitulation among leveraged traders, while the BTC market cap dipped under $2 trillion for the first time in months. Is this a healthy Bitcoin correction or the start of a deeper bear phase?
Why is Bitcoin Price Crashing?
Following the surge to $125,000 ATH, large holders are offloading positions to lock in gains from the recent bull run.
This “cycling out” of old supply has flooded the market with selling pressure, suppressing prices as new buyers absorb the volume. Analysts note this as a sign of market maturity, but it’s exacerbated by high liquidity, enabling easy exits.
But for every sale there is a buy, and they have been balanced in terms of commitment, hence the price going sideways for months. It has been reported that something like 400,000 BTC have been sold. However, other players are stacking up that same amount, according to data from CryptoQuant.
Bitcoin ETFs, which drove much of 2025’s rally, are recording net outflows as institutions rotate capital away from risk assets ahead of the Fed’s urgent announcement today. In the last 2 hours, Binance, Wintermute, and BlackRock have sold over $1.5B in Bitcoin, and they’re still selling.
Nevertheless, daily mined BTC (450 BTC/day) remains below ETF buying pressure (2,933 BTC/day), which shows institutional demand for BTC remains.
Bitcoin Price Risks Major Dump if $100,000 Support Breaks
Diving into the daily BTC/USDT chart, Bitcoin’s trajectory paints a tale of exuberance followed by exhaustion. The asset kicked off the year with a bang, surging from sub-$80,000 levels in January to breach $110,000 by March, fueled by ETF inflows and halving afterglow.
By October, it clawed to that $125,000 high, forming a textbook parabolic arc signaling overbought. Fast-forward to now, and the price has carved out a steep falling wedge since the October high, with sellers finally dominating on the last retest of the $110,000 support zone.
Momentum Indicators Flash Mixed Signals
The 50-day simple moving average (SMA), hovering at $112,531, acts as a stubborn ceiling, while the 200-day SMA at $110,166 turns from support to resistance after Bitcoin breached it to the downside.
Today’s price action suggests buyers are probing for a floor around the 0.5 Fibonacci retracement level ($100,264).
The Relative Strength Index (RSI) has dipped to 32.14, just shy of the “buy” territory, while MACD is also crossed bearish, signaling strengthening bearish momentum.
Fundamentals offer a counterbalance to the fear. Spot Bitcoin ETFs saw $450 million in inflows this week, despite the dip, per FarSide Investors data, signaling institutional conviction. Ethereum’s Dencun upgrade and Solana’s meme frenzy have buoyed altcoin sentiment, but BTC dominance at 54% warns of rotation risks. Analysts at Glassnode point to rising HODLer conviction, with long-term holders accumulating 2.1% of supply since October.
What’s Next for Bitcoin Price?
Short-term bears could push for $95,000 if the Fed announcement today disappoints, but a V-shaped recovery to $108,000 seems plausible on any dovish pivot.
Longer-term, this looks like the “shakeout before breakout” phase of bull markets past, echoing 2021’s mid-cycle wobble.
Traders may want to watch the volume as a surge with a green close could ignite the next leg up toward $130,000 by the end of November.
Disclaimer: The facts and analysis presented here are only for informational purposes. Readers should not interpret the content of this article as financial advice or product recommendations.
