Bitcoin has recently endured a significant slump, shedding approximately 10% of its market value over three days, falling from around $108,000 to $97,000. This rapid decline impacted key short-term levels and liquidated positions that had been stable since October. Samson Mow, a prominent figure in the Bitcoin community, dismissed the downturn as an "obvious bear trap," a sentiment echoed by market behavior indicating a quick recovery in spot markets after forced liquidations.

During this period, Glassnode recorded the largest realized-loss print of the quarter, with approximately $600 million lost within an hour as coins from the 3-6 month age band were moved. This cohort typically comprises less reactive holders, suggesting that the recent sell-off was driven by frayed nerves finally breaking. The Bitcoin price, after falling to $97,000, saw immediate buying by spot markets once the liquidation waves subsided, indicating that most pressure stemmed from overextended positions rather than widespread distribution.

Further exacerbating the situation, Bitcoin price fell sharply today from an intraday high of $104,000 to $94,480, wiping out earlier gains and marking a decisive breakdown. This consistent bleed from the upper $101,000s to $94,480 was accompanied by Ethereum dropping below $3,100 and major crypto stocks like Coinbase and Strategy trading in the red. The Bitcoin Fear and Greed Index plummeted to a new “Extreme Fear” low, signaling deep market anxiety, although long-term holders largely maintained their positions.

The price drop to these levels followed weeks of weakening demand, heavy long-term holder sell-offs, and persistent outflows from spot Bitcoin ETFs. Over 815,000 BTC, valued at nearly $79 billion, were sold by long-term holders in 30 days, marking the most since early 2024, while ETFs experienced hundreds of millions in daily outflows, draining liquidity at a critical juncture. Futures funding turned negative, approximately $550 million in positions were liquidated by November 13, and options traders rushed to buy protective puts ahead of a $4 billion expiry, reinforcing bearish momentum.

Macroeconomic pressures also contributed to the decline, including sliding tech stocks, delayed key U.S. economic data, and elevated risk aversion due to uncertainty surrounding the Federal Reserve’s rate path. Technically, Bitcoin has breached major supports, including its 200-day moving average and key Fibonacci levels. Analysts warn that a decisive drop below $97,000 could open a path toward the $92,000–$74,000 range. Bitcoin Magazine Pro data notes that the price was last near these sub-$94,000 levels in early May.

Derivatives desks identified three concentration zones around $101,000, $99,500, and $97,800 where old long positions were liquidated. Once these pockets were cleared, the market did not show the aggressive follow-through typically associated with a deeper unwinding. This combination of local capitulation, liquidation-driven flow, and swift spot market response suggests the move was more of a market “cleanup” than a structural break, aligning with Mow's assessment and focusing attention on Bitcoin's performance around the $97,000 mark now that forced selling has abated.

Analysts from Bitfinex suggest that the current Bitcoin pullback mirrors past mid-cycle retracements, with the drop from October’s high matching the typical 22% drawdown observed throughout the 2023–2025 bull market. They emphasize that even at the $100,000 level, approximately 72% of the total BTC supply remains in profit, anticipating a short relief rally but noting that a sustained recovery will require fresh demand. JPMorgan analysts, according to The Block, believe Bitcoin’s estimated production cost of $94,000 acts as a historical price floor, suggesting the price is near a bottom. They attribute rising production costs to increasing network difficulty and maintain a bold 6–12 month upside projection of about $170,000.

Large Bitcoin price swings are primarily driven not by small retail investors, but by whales, institutions, and leveraged market structures. Whale wallets, capable of moving thousands of BTC, can influence market sentiment in low-liquidity conditions with single transfers. Furthermore, ETF flows, hedge funds, and corporate treasuries now largely dictate daily market direction, with billions in inflows or outflows determining whether Bitcoin rallies or plunges. At the time of writing, Bitcoin’s price stands at $94,470.