Bitcoin’s latest plunge to just above $100,000 has reignited market panic—but behind the noise, accumulation trends are quietly building. With extreme fear dominating sentiment, savvy traders may already be preparing for the next reversal.
BTC briefly bounced to $101K after billions in forced liquidations wiped out overleveraged longs across major exchanges. In the past 24 hours alone, $2B in futures were flushed—$1.6B from long positions. Ethereum slid below $3,350, Solana dropped to $156, and DOGE retraced to $0.164, marking a brutal week where most large-caps lost 15–20%. The Fear & Greed Index now sits at 21, its lowest reading since April—a zone that historically precedes rebounds.
Key Drivers Behind the Selloff
Institutional Outflows Pressure Sentiment.
BlackRock’s IBIT ETF led a massive $186.5M outflow on November 3, unloading roughly 24,000 BTC worth $2.75B. After October’s record inflows, this reversal confirms that institutional players are trimming exposure ahead of uncertain macro signals—leaving retail traders to absorb volatility without the safety net of smart money liquidity.
Fed’s Liquidity Tug-of-War.
Between November 1–3, the Federal Reserve injected $37B into the banking system via repo operations—then drained more than $75B through reverse repos. This mixed message has rattled risk assets, reinforcing a risk-off tone across equities and crypto alike. With traders now doubting another 2025 rate cut, liquidity sensitivity remains high.
Technical Breakdown Meets On-Chain Weakness.
Bitcoin’s drop below its 50-week SMA (~$103.4K) marks a decisive technical shift. Exchange data shows Bybit, Hyperliquid, and Binance led liquidations, underscoring just how crowded the long side was. RSI now reads 29—oversold but not yet recovering. The next battle lines: $100K as psychological support, $95K–$98K as structural defense, and $106K–$110K as short-term resistance.
Key Takeaway
Until the Fed’s stance and ETF flows stabilize, crypto will remain pinned by macro pressure.
Watch for BTC to reclaim $106K on daily close—confirmation that buyers are back.
For disciplined traders, extreme fear often sets the stage for opportunity. Don’t chase the bounce; trade the structure, not the sentiment.