Bitcoin plunges below $100,000, signs of recovery forming 🌊
The cryptocurrency market continues to see strong volatility as Bitcoin (BTC) falls below $100,000, marking the first time since June that the price has returned to this level. After reaching a record high just a few weeks ago, BTC has now fallen more than 20%, causing many investors to worry that a deep correction cycle is unfolding.
Strong ETF outflows, selling pressure from long-term investors
According to data from SoSoValue, spot Bitcoin ETFs recorded $577 million in net outflows on November 4 alone, extending a streak of five consecutive days of capital withdrawals.
Notably, Ethereum ETFs also saw $219 million in outflows, bringing the total value of capital withdrawals from the two largest ETF products in the market to nearly $800 million.
Meanwhile, on-chain data shows that long-term investors have sold more than 400,000 BTC, equivalent to about $45 billion, within a month – a sell-off rarely seen since 2022.
Domino Effect: Liquidation and Widespread Fear
The sharp drop in BTC prices triggered a wave of leveraged position liquidations, with more than $1.7 billion wiped out in 24 hours, of which about $1.2 billion came from long orders.
The Fear & Greed Index plunged into the “Extreme Fear” zone, clearly reflecting the short-term pessimism of the market.
Ethereum (ETH) is not immune to this wave, currently trading around $3,380, erasing all gains since the start of 2025.
Broad profit-taking by investors – but macro factors remain positive
According to analysts at The Kobeissi Letter, the correction is largely due to mass profit-taking after the market's hot bull run.
“This is a technical correction rather than a fundamental change,” the report noted, emphasizing that the fundamentals remain solid: interest rates are about to be cut, monetary policy is loose, and corporate profits are still up more than 10% year-on-year.
Technical outlook: new accumulation zone opening
Some technical analysts believe that Bitcoin is trading in a short-term accumulation zone, between support around $95,000 and resistance at $112,000.
If prices remain stable and buying volumes recover, a rebound towards $112,000 could soon form, opening the door for a new rally in Q4.
Summary:
Despite the strong correction, fundamentals still favor Bitcoin’s long-term uptrend. ETF outflows and profit-taking suggest caution, but institutional investors may be preparing for a portfolio rebalancing that could set the stage for a further recovery.