Bitcoin has experienced a sharp decline, losing roughly 10% of its market value over three days, falling from $108,000 to $97,000. This swift downturn impacted key short-term support levels and liquidated positions that had remained stable since October. Samson Mow, a prominent figure in the Bitcoin community, dismissed the sell-off as an “obvious bear trap,” noting that spot markets quickly rebounded after forced liquidations.

During the sell-off, Glassnode recorded the largest realized-loss print of the quarter, with nearly $600 million lost within an hour as coins aged 3–6 months were moved. This group typically represents less reactive holders, indicating that the sell-off stemmed from nervous investors rather than a widespread distribution. Spot market buying immediately followed the dip to $97,000, suggesting the move was primarily liquidation-driven.

Bitcoin’s price further dropped today from an intraday high of $104,000 to $94,480, wiping out earlier gains. Ethereum also fell below $3,100, while crypto stocks like Coinbase and Strategy traded in the red. The Bitcoin Fear and Greed Index plunged to “Extreme Fear,” signaling intense market anxiety, though long-term holders largely retained their positions.

The decline reflects weeks of weakening demand, long-term holder sales, and persistent outflows from spot ETFs. Over 815,000 BTC, valued at nearly $79 billion, were sold by long-term holders in the past 30 days—the highest since early 2024. Meanwhile, ETF outflows drained liquidity, futures funding turned negative, and $550 million in positions were liquidated by November 13. Options traders also rushed to purchase protective puts ahead of a $4 billion expiry, reinforcing bearish momentum.

Macroeconomic pressures contributed to the sell-off, including weakening tech stocks, delayed U.S. economic data, and elevated risk aversion amid Federal Reserve rate uncertainty. Technically, Bitcoin breached major supports, including its 200-day moving average and key Fibonacci levels. Analysts warn that a decisive break below $97,000 could open the path to $92,000–$74,000.

Derivatives desks highlighted 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 experience the aggressive follow-through usually seen in deeper unwinds. This pattern suggests the move was more of a market “cleanup” than a structural break, supporting Mow's assessment.

Bitfinex analysts note that the current pullback mirrors mid-cycle retracements, with the drop from October’s high aligning with the typical 22% drawdown observed during the 2023–2025 bull market. Despite the decline, roughly 72% of the BTC supply remains in profit. JPMorgan analysts, reported by The Block, cite Bitcoin’s production cost of $94,000 as a historical floor, projecting a potential 6–12 month upside near $170,000.

Market swings are largely driven by whales, institutions, and leveraged structures rather than small retail investors. Whale wallets, ETF flows, hedge funds, and corporate treasuries now dictate daily price movements, with billions in inflows or outflows influencing whether Bitcoin rallies or plunges. At the time of writing, Bitcoin trades around $94,470.