Bitcoin price falls below $100,000, with losses hitting a 9-month high.
Bitcoin (BTC) continues to decline this week, losing more than 8% of its value in the last 48 hours. This decline has confirmed a bearish scenario that could lead to further losses if selling pressure persists.
However, the final outcome depends on how investors react to current key psychological levels.
Bitcoin holders have a chance
Market sentiment towards Bitcoin is becoming increasingly negative. On-chain data shows that the total volume of transactions at a loss has reached a nine-month high. More than 235,850 BTC, worth approximately $24 billion, were moved at a loss in the last 24 hours, indicating a massive panic sell-off among investors.
Such large-scale Bitcoin losses indicate declining investor confidence and growing fear in the market. If this behavior continues, it could accelerate Bitcoin's decline, eroding capital and causing even greater losses in the altcoin market.
Read also: What Bitcoin's first “red” October in 7 years led to – an article from BeInCrypto.
Bitcoin transaction volume at a loss. Source: Santiment
From a macroeconomic perspective, Bitcoin's MVRV ratio—a key metric for profitability—has fallen into the “opportunity zone” for the first time since March. Typically, when the ratio ranges from 6% to 17%, it signals a market bottom, indicating selling saturation.
This event could be a turning point if market participants begin to view Bitcoin's current price as a good buy. However, overall macroeconomic sentiment and investor behavior in the coming days will be critical in determining whether BTC stabilizes or continues to decline.
Bitcoin's MVRV. Source: Santiment
BTC price holds
At the time of writing, Bitcoin is trading at $101,729, just above the critical $100,000 support. BTC had previously fallen below this level, reaching an intraday low of $98,966 before recovering slightly.
The recent 8% drop confirmed the formation of a head and shoulders pattern, indicating a potential 13.6% decline to $89,948. However, if investors begin buying at lower levels, Bitcoin could rebound from $100,000 and retest $105,000 or even higher.
Bitcoin Price Analysis. Source: TradingView
On the other hand, continued selling pressure and weak market conditions could push BTC back below $100,000. A break of $98,000 could lead to further losses down to $95,000 and below, undermining hopes for a short-term recovery.
Source: cryptonews.net
