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Bitcoin Loses $100K As Selling, Liquidations Hit New Highs - news.adtechsolutions Bitcoin Loses $100K As Selling, Liquidations Hit New Highs - news.adtechsolutions

Bitcoin Loses $100K As Selling, Liquidations Hit New Highs


Key points:

  • Bitcoin falls to 4-month lows below $100,000 as sellers capitulate and spot BTC ETF outflows increase.

  • Traders identify the range of $88,000 to $95,000 as a potential bottom.

Bitcoin (BTC) the sale intensified on Tuesday as BTC abruptly fell to a 4-month low of $100,800. While analysts everywhere seem to be scratching their heads about the exact reasons for the current selling, there is consensus that BTC price could slip down, possibly bottoming around $95,000.

The popular trader, HORSE, traded the following chart and suggested that a bottom could be approaching, if $100,000 is not “a trap”.

Image
BTC/USD. Source: Horse/X

“Perhaps you have a trap at this low, but if not, these are the levels I’m looking for Bitcoin. You want to see $100K arrive in front, because big round numbers like this, if it’s exchanged, it smokes on the way back.”

Hyblock’s liquidation map data shows that leveraged long positions at $100,000 are at risk of absorption, followed by relatively thin liquidity up to $88,000.

BTC / USDT liquidation heatmap, 7-day outlook: Source: Hyblock

On the other hand, crypto media personality and trader Scott Melker published a crypto tweet, noting that Bitcoin “definitely lost the weekly 50-MA as support 4 times in history”, and Melker noted that every time the BTC price lost this moving average, “the price kept testing the 200-MA”.

Melker said:

“Price is currently $700 above the 50MA. The 200 MA is sitting around $55,000 (and rising).”

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BTC/USD 1 week chart. Source: The wolf of all the streets / X

Another prevailing theory that makes the rounds on X is that a variety of professional and institutional level entities have seen their portfolios crippled by the sale of the crypto market on October 10, which resulted in $20 billion in Bitcoin positions being liquidated and an even larger figure in the total market.

Analysts like options trader Tony Stewart have suggested that these paralyzed funds are the source of Tuesday’s excessive selling in the Bitcoin markets and that while the entities remain unknown for the time being, “there will now be big companies that can see the blurry image of the body under the water.”

In the post, Stewart explains how to indicate which funds are under pressure and what this could mean for the price of Bitcoin going forward.

This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision.