The crypto market has yet again witnessed a major downturn today, with Bitcoin dropping below the $104,000 level and altcoins recording significant losses. Massive liquidations were seen in the past day, and fears are now growing that a drop below $100,000 for Bitcoin could be next.
Over $1 Billion Liquidations Hit the Market
Data from Coinglass shows that over $1 billion in leveraged long positions have been liquidated in the past 24 hours, which reflects the volatility in the market. The Crypto Fear and Greed Index had plunged to 21, signaling extreme fear. However, it has since recovered to 26 but remains in the fear zone.
These liquidations have intensified panic across the market.
Traders Brace for A Drop Below $100K
Amid rising uncertainty, traders on Polymarket now assign a 62% chance that Bitcoin will drop below $100K this month.
The short-term outlook remains negative as a wave of FUD spreads, driven by massive liquidations and uncertainty surrounding macroeconomic data. Moreover, the U.S. government shutdown is disrupting liquidity flows, which is pressuring Bitcoin.
Analysts Warn of Deeper Correction to $92K
Investor Ted Pillows says that Bitcoin is in “absolute freefall” right now. He warns that there is no strong support until the $100,000 level, which means that it is most likely to get retested.
He further notes that if Bitcoin fails to hold the $100,000 zone, the market could see another correction toward the $92,000 level, which has a CME gap.
Experts Remain Divided – Better Times Ahead?
Bitwise CIO Matt Hougan has similarly predicted that Bitcoin could briefly dip below $100,000 but remains confident in its long-term outlook. Any drop is expected to be temporary, with a new all-time high likely before the end of the year.
CryptoQuant analysts also note that Bitcoin’s recent price correction may be nearing its end.
Data shows that long-term holders took profits around $120K price levels, dropping their dominance from 55% to 46%. This led to increased volatility and some panic selling when prices fell. However, new investors are now holding strong, which suggests that Bitcoin’s correction may soon end and the overall bullish trend is still intact.
The crypto market sentiment remains tense for now and all eyes are on the Bitcoin price. Although fear dominates the short term, the consensus is that these deep corrections set the stage for the next major rally.
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