Bitcoin has officially lost its footing below the critical $100,000 level, rattling markets and fueling a wave of fear-driven selling. The move comes after a sharp surge in bearish sentiment, with CryptoQuant data indicating that Bitcoin’s latest decline is largely psychological rather than fundamentally driven.

Over the past several days, the market has shifted from confidence to panic at remarkable speed. The Fear & Greed Index plunged to 21 — deep in fear territory — just days after BTC briefly tapped $107K. Bullish narratives calling for a $150K–$200K breakout have vanished from social platforms, replaced by anxiety, disbelief, and calls for deeper downside.

Google search trends for Bitcoin interest cooled significantly after October highs, mirroring weakening retail enthusiasm. Meanwhile, altcoin sentiment collapsed to extreme lows, hitting -81 as traders capitulated across the board.

This emotional swing is not unusual for crypto. With a relatively small market structure and large speculative participation, crypto assets remain highly sensitive to sentiment shocks. In many cases, price movements are influenced more by crowd psychology than by on-chain fundamentals. While the sell-off has been intense, analysts note that network data remains resilient — raising the question of whether panic, rather than macro reality, is driving this correction.

On-Chain Data Shows Strength Beneath the Sell-Off

Despite Bitcoin’s sharp drop below $100K, on-chain data paints a very different picture beneath the surface. According to a CryptoQuant report by XWIN Research Japan, there is no evidence of structural weakness or network deterioration — only a sentiment-driven correction.

Key network metrics remain solid. Exchange withdrawals have surged, suggesting investors are moving BTC into self-custody rather than rushing to exit the market. Meanwhile, UTXOs in loss have risen to roughly 12%, signaling discomfort — but still far from levels associated with true capitulation phases in past cycles. This indicates that most market participants remain positioned for longer-term upside.

At the protocol level, Bitcoin continues to show strength. Hashrate remains near all-time highs at approximately 1.1 ZH/s, reinforcing network security and miner confidence. Whale ratio has trended lower, pointing to reduced sell-side pressure from large holders.

Liquidity dynamics also support a potential rebound. Over $10.7B in stablecoins has recently flowed into Binance, providing substantial dry powder for future accumulation. Realized cap data shows long-term holders trimming some profits, but importantly, incoming demand continues to absorb supply.

Overall, the pullback appears sentiment-driven rather than fundamental. On-chain signals suggest the broader uptrend remains intact — making this volatility a test of conviction, not the start of a structural reversal.

Key Support Under Pressure, Short-Term Trend Weakens

Bitcoin continues to trade under heavy pressure following its breakdown from the $110,000 range, slipping below the psychological $100,000 level before stabilizing near current support around $101,800. The 4-hour chart shows a clear transition into a lower-highs, lower-lows structure, confirming short-term bearish momentum.

Moving averages reinforce this weakness: price is trading below the 50-, 100-, and 200-period moving averages, signaling that bears remain in control.

The sharp impulse move down was met with a spike in volume, suggesting panic-driven selling rather than a slow, distribution-based decline. Since then, volume has normalized as price attempts to consolidate above the $100,000 region. This zone now serves as a pivotal demand area — a break below it could expose deeper downside toward $95,000–$98,000, where stronger historical liquidity sits.

Despite the selloff, Bitcoin is showing early signs of stabilization. The wick below $100K indicates buyers stepped in aggressively at that level, preventing further liquidation cascades. However, bulls need to reclaim the $105,000–$107,000 band to neutralize short-term downside pressure and signal a potential recovery.

For now, the trend remains fragile as market sentiment cools and traders reassess positioning. Price stability above $100K is critical — losing this range could trigger another wave of forced selling, while defending it may set the stage for a relief bounce.

Featured image from ChatGPT, chart from TradingView.com

After failing to close the week above a crucial level, Bitcoin (BTC) is attempting to hold $100,000 as support, leading some analysts to suggest that this is the make-or-break moment for the cryptocurrency.

Bitcoin Plunges To Physiological Barrier

On Tuesday, Bitcoin saw a 9% drop from its weekly opening, dropping to the $100,000 area for the first time in months. The flagship crypto has been trading above $105,000 since late June, hovering between $108,000-$120,000 over the past four months.

During the early October correction, BTC’s price briefly deviated below these crucial levels, hitting a three-month low of $102,000 before recovering. Since then, the cryptocurrency has struggled to reclaim the mid-zone of its local range, falling to the $106,000-$108,000 area multiple times in the daily timeframe.

As the price retested the $100,000 level, Sjuul from AltCryptoGems noted that Bitcoin has now broken below its 10th of October low, which was “the last major level before the $98K low from the Middle Eastern war fud back in June.”

Analyst Ted Pillows highlighted that BTC has two massive liquidity clusters on the longer timeframes. Per the chart, the first cluster sits around the $90,000 level, which also coincides with an open CME Gap from Q2.

Meanwhile, the second cluster sits around the all-time high area at $126,000. “Given that the market is looking weak now, a dump to fill the CME gap before reversal could happen,” the market watcher warned.

However, Ali Martinez suggested that a 5%-11% rebound from the current area is possible. The chart shows that Bitcoin has been trading between $101,300-$124,000 price range since May, bouncing from the lower boundary each time it was retested. If BTC holds this area, it could surge to at least $106,500 or $112,000, the analyst asserted.

BTC Retests 50-Week EMA

Rekt Capital highlighted that BTC had reached the 50-week Exponential Moving Average (EMA). The analyst explained that after closing below the 21-week EMA, Bitcoin was deviating below its range lows for the fifth consecutive week.

The 21-week EMA has served as crucial support during pullbacks since late Q2. However, it was lost amid the recent market volatility. Last week, multiple analysts warned that closing above this level was crucial to turn it back into support and prevent a larger pullback.

Per the Tuesday post, the 50-week EMA, sitting around the $100,000 level, “would probably only get tagged on confirmed breakdown from $108k,” meaning that the flagship crypto will need to close the week above this level to maintain its current price range.

Similarly, Crypto Bullet pointed out that the 50-week MA retest was “the moment of truth” for BTC. Notably, the cryptocurrency has retested this indicator three times this cycle, marking the bottom of each corrective phase and the start of a new rally to a new all-time high (ATH).

The market watcher warned that losing this level would mean “it’s lights out” for the flagship cryptocurrency. However, a rebound from this area could set the stage for a price recovery and a potential bullish rally in late Q4.

As of this writing, Bitcoin is trading at $100,356, a 6% decline in the daily timeframe.