Bitcoin experienced a sharp decline on November 5, dropping below the key $100,000 psychological threshold for the first time since late June. According to Gate platform data, as of November 5 (UTC), the Bitcoin price stood at $101,799.38, marking a drop of over 7% in the past 24 hours.
This plunge triggered a wave of forced liquidations, with more than 470,000 traders worldwide liquidated in the past 24 hours. The total amount of liquidations approached $1.8 billion, setting a new single-day record since August.
01 Price Action: Bitcoin’s Wild Swings
As of November 5, Bitcoin’s price hovered at lower levels, at one point dipping below $99,000, with an intraday drop approaching 2.5%.
Data across multiple platforms reflected the same downward trend. According to Gate market data, BTC was last reported at $101,600, down 2.59% over the past 24 hours.
After hitting a low of $99,000, Bitcoin briefly rebounded to around $100,500, narrowing the 24-hour loss to 5.6%.
However, the sell-off was not a one-way street—during the session, Bitcoin reached as high as $113,600, highlighting the intense tug-of-war between bulls and bears.
02 Chain Reaction: Spreading Market Panic
This Bitcoin plunge set off a chain reaction across the crypto market, with over 470,000 traders globally facing forced liquidations in the past 24 hours.
Long positions took the brunt of the hit, accounting for over 90% of all liquidations. This suggests most investors were betting on Bitcoin’s continued rise.
Panic was not limited to retail traders—institutions also showed caution. Over the past week, spot BTC ETFs saw net outflows of roughly $800 million.
BlackRock’s IBIT alone recorded a single-day outflow of $400 million, the highest among the 11 comparable funds.
03 Reasons for the Drop: Multiple Factors at Play
Fed Policy Shift
One major driver behind the selling pressure was hawkish commentary from Federal Reserve Chair Jerome Powell. Following the November FOMC meeting, he stated that a rate cut in December was "far from certain."
This remark pushed the U.S. Dollar Index to a three-month high, and volatility in traditional financial markets spilled over into the crypto space.
Divergence in Institutional Flows
There was also a clear divergence in capital flows. Over the past week, spot BTC ETFs saw about $800 million in net outflows, while spot ETH ETFs posted modest net inflows.
This divergence reflects differing attitudes among market participants toward various crypto assets.
Breach of Key Technical Levels
According to 10x Research founder Markus Thielen, the $100,000 mark is not just a round number but also a major liquidation trigger for leveraged positions.
As the price fell below $100,000, algorithmic trading programs triggered a cascade of sell orders, further amplifying the decline.
04 Market Outlook: Diverging Expectations
Bearish Sentiment
Compass Point analyst Ed Engel noted that retail investors may not be as eager to buy the dip as in previous cycles.
In a recent report, he stated: "While long-term holders selling is common in bull markets, retail spot buyers are participating less than in prior cycles."
Market analyst Damian Chmiel pointed out that if Bitcoin remains below $100,000, it could trigger an even steeper sell-off, potentially revisiting the April low near $74,000.
Bullish Voices
Despite the volatility, some institutions are choosing to buy in. A large investor who sold BTC last November recently re-entered the market, purchasing 800 BTC at an average price of $106,060.
Several prominent Wall Street bulls remain optimistic. Tom Lee of Fundstrat stated that despite recent turbulence, he still projects Bitcoin could soar to $150,000–$200,000 by the end of 2025.
05 Technical Analysis: Key Levels and Indicators
From a technical perspective, the BTC price has been fluctuating around the $100,000 mark, and is likely to remain highly volatile in the short term.
The 21-week moving average is a technical indicator worth watching, as it has historically provided important reference points across multiple cycles.
The Relative Strength Index (RSI) is currently at 29, indicating Bitcoin has entered oversold territory, which could suggest a potential for price recovery.
Investors should closely monitor whether the $118,000 resistance level is breached, while remaining alert to possible pullbacks.
06 Investment Strategies: Navigating a Volatile Market
Institutional Moves
Amid widespread panic, some institutions are quietly increasing their positions. Earlier, Strategy announced it had added another 397 BTC to its holdings.
The company bought at an average price of $114,771 per Bitcoin, spending approximately $45.6 million in total.
Retail Strategies
For individual investors, a wait-and-see approach is advisable in today’s uncertain market environment, with a focus on confirming long-term trends.
Technical indicators point to potential support, but short-term uncertainty remains. Investors should avoid blindly buying the dip, especially when using high leverage.
Outlook
Bitcoin’s repeated swings around the $100,000 level highlight the fierce battle between bulls and bears. On one hand, large investors re-entering the market suggests continued long-term confidence; on the other, four consecutive days of net outflows from U.S. spot Bitcoin ETFs indicate ongoing short-term pressure.
Market analyst Damian Chmiel warns that if Bitcoin stays below $100,000, it could trigger an even sharper sell-off, with the next target being the April low near $74,000.
Despite the uncertain road ahead, prominent bulls like Tom Lee of Fundstrat remain steadfast in their forecast that Bitcoin could surge to $150,000–$200,000 by the end of 2025.
