Bitcoin’s sharp retreat below the six-figure mark on Tuesday night rattled markets but also underscored how tightly sentiment now revolves around a handful of key technical levels.
The drop — which briefly took prices to $99,980 before a swift recovery to around $101,700 — triggered a massive wave of leveraged liquidations and renewed debate over whether the bull market is starting to lose momentum.
Data from CoinGlass shows that more than $1.7 billion worth of crypto positions were liquidated across exchanges in 24 hours, including $1.3 billion in longs, as cascading margin calls gripped the market. The total crypto market capitalization dropped to about $3.4 trillion, erasing nearly $290 billion in value as altcoins like Ethereum and Solana tumbled in parallel.
The move came amid a global risk-off wave driven by weakness in equities and commodities. Investors rotated capital into cash and U.S. Treasuries while cutting exposure to high-beta assets such as crypto and AI-linked tech stocks.
Adding to the pressure, Bitcoin spot ETFs recorded $578 million in outflows on November 4, extending their losing streak to a fifth consecutive day. Ethereum ETFs saw $219 million withdrawn, though Solana funds managed to buck the trend with nearly $15 million in inflows.
Despite the drama, several analysts argue that the drop represents a necessary reset, not a collapse. Nic Puckrin, co-founder of The Coin Bureau, said the return below $100K was emotionally charged but not structurally significant.
“Bitcoin under $100,000 tends to fill investors with dread,” Puckrin said. “But we’re still within 20% of the all-time high. In crypto, that’s just a correction, not capitulation.”
Puckrin pointed to the 50-week exponential moving average, now near $101,000, as the critical support level to watch. “If that holds, the market structure remains intact. The swings are getting wilder, but I still see $150,000 as a likely top for this cycle,” he added.
Market analyst Michaël van de Poppe echoed the idea that Bitcoin is entering a pivotal phase. In an X post, he highlighted the importance of the current range as a potential rebound zone following rejection at $112,000.
This remains to be the crucial level for #Bitcoin.
Tons of volatility on the markets at this point, and I think it will remain like that, but given the fact that $112K rejected, this has become the most important level to check for potential bounces. pic.twitter.com/WRxrDKcr53
— Michaël van de Poppe (@CryptoMichNL) November 5, 2025
“This remains the crucial level for Bitcoin,” van de Poppe wrote. “There’s tons of volatility, and I think that will continue, but given the rejection at $112K, this has become the key level to watch for potential bounces.”
Van de Poppe’s chart analysis shows a build-up of trading volume around current prices, suggesting strong buying interest just below the psychological $100K threshold — a level that could determine whether the next move is a recovery or a deeper slide.
According to Timothy Misir, head of research at BRN, the recent volatility was driven primarily by excess leverage rather than investor panic. “This was leverage, not belief, leaving the market,” he said. “Long-term holders haven’t moved their coins. The market is leaner now, but sentiment is still fragile.”
On-chain data places Bitcoin’s cost basis support between $98,000 and $100,000, with overhead resistance forming near $107,000-$110,000. Analysts agree that unless ETF inflows return or macro conditions stabilize, Bitcoin is likely to consolidate in this zone as the market rebuilds confidence.
“The reset was violent, but it cleaned up excess risk,” Misir noted. “Now we’re left with a leaner market, and the next direction will depend entirely on whether buyers step in at this level.”
