Bitcoin has caught bulls off guard with a move below the $100k level and lower.
BTCUSD – Daily Chart
BTC tested the key $100,000 level last week, and a small bounce led to further selling below $93,000 as we start the new week. There is potential for a move to $80,000, as there is little support down to that level.
Bitcoin lost more than 12% since Monday, falling to a new six-month low. The derivatives markets are driving the weakness, as several large tech names also declined this week. Investors are now concerned trader confidence in the crypto market.
The latest pullback erased $900 million in leveraged long positions, equal to almost 2% of total open interest. Despite the small amount, think volume led to a sharper correction. In contrast, the previous move lower in October triggered a 22% drop in BTC futures open interest
Concerns about inflation are back after President Donald Trump announced his intention to cut tariffs to slow high food costs. Mohamed El-Erian, chief economic adviser at Allianz, said recession risks have increased as the “lower ends of the income distribution for households” struggles with the “affordability crunch.”
There are fears that it could spread through the economy and investors are taking some money out of risky bets. The fear in bitcoin trading is a far cry from the surge in ETF inflows that drove new all-time highs earlier in the year.
Whales and market makers increased their long positions at Binance from Wednesday, buying the dip as Bitcoin moved below $100,000. But, OKX whales cut their bullish exposure at losses after the $98,000 support level failed. Despite this, there is hope from professional traders appear that a low is surely close.
JP Morgan analysts are still bullish, saying that they remain committed to a 2026 Bitcoin price forecast of around $170,000. They added that the Bitcoin-to-gold volatility ratio has trended downwards, which could see the coin finding a low soon.
It could be an important week for Bitcoin as global markets wake up to prices that were last seen in May.
