Analysts say BTC is set to drop lower: Here is why

Bitcoin price fell to 4-month lows below $100,000 as sellers completely overwhelmed buyers, and analysts speculated that “dead bodies” from the Oct. 10 sell-off are finally beginning to surface.

Bitcoin falls below $100K as sellers completely overwhelm buyers

Key points: Bitcoin falls to 4-month lows below $100,000 as sellers capitulate and spot BTC ETF outflows increase. Traders pinpoint the $88,000 to $95,000 range as a potential bottom.

Analysts speculate 'dead bodies' from October sell-off surface now

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

Traders identify $88,000 to $95,000 range as potential bottom

Popular trader, HORSE, traded the following chart and suggested a bottom could be approaching, if $100,000 proves not to be “a trap.”

BTC price could slip lower, possibly bottoming around $95,000

Liquidation heatmap data from Hyblock shows leveraged long positions at $100,000 are at risk of absorption, followed by relatively thin liquidity until $88,000.

Scott Melker notes Bitcoin lost weekly 50-MA support four times in history

On the other hand, crypto media personality and trader Scott Melker posted a cryptic tweet, noting that Bitcoin “has definitively lost the weekly 50-MA as support 4 times in history,” and Melker noted that every time BTC price lost this moving average, “price went on to test the 200-MA.”

Crippled portfolios resulted in $20 billion in Bitcoin liquidations

Another prevailing theory making the rounds on X is that a range of professional and institutional-level entities saw their portfolios crippled by the Oct. 10 crypto market sell-off, which resulted in $20 billion in Bitcoin positions being liquidated and an even larger figure across the total market.

Analysts suggest unknown entities are source of Tuesday’s overwhelming selling

Analysts like options trader Tony Stewart have suggested that these crippled funds are the source of Tuesday’s overwhelming selling across Bitcoin markets and that while the entities remain unknown at the moment, “there will by now be large firms that can see the blurred body image underwater.”

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

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