Bitcoin’s value recently dipped below $104,800, driven by significant selling pressure across the entire crypto market. In just 24 hours, over $1.1 billion in crypto positions were liquidated, signaling a global liquidity crunch. The overall cryptocurrency market capitalization currently hovers around $3.54 trillion. Ethereum also mirrored this trend, falling by 5.6 percent to $3,500.
Altcoin Prices Take a Hit as Traders Re-evaluate Risk
The broader altcoin market saw considerable declines as investors became more risk-averse towards digital assets. Binance Coin experienced a 7.9 percent drop to $956, while Solana slid by 9.8 percent to $159.52. Dogecoin decreased by 6.1 percent to $0.16, and XRP fell by 6.2 percent to $2.28 within the last day.
According to Edul Patel, CEO of Mudrex, this market movement signifies a consolidation phase, influenced by the US Federal Reserve’s hawkish stance. The lack of major US economic data releases has heightened market uncertainty, prompting widespread profit-taking. Despite this, Strategy acquired 397 BTC for $45.6 million, demonstrating strong institutional interest even at these lower price points. Bitcoin’s critical resistance level is currently at $108,800, with support found at $104,400.
Riya Sehgal, a Research Analyst at Delta Exchange, highlighted that the recent pullback indicates ongoing downside risks. From a technical perspective, Bitcoin’s fall below its 200-day Exponential Moving Average suggests continued bearish pressure unless it manages to recover to the $109,500–$110,000 range. Despite this short-term weakness, November has historically been a strong month for Bitcoin. Factors like renewed US government spending, corporate buybacks, and potential US Fed liquidity could trigger a rebound later in the month.
Avinash Shekhar, Co-Founder & CEO of Pi42, offered a broader market view, calling this period a “reset” rather than a “breakdown.” He explained that the recent correction in major cryptocurrencies underscores the inherent fragility of a highly leveraged market. For long-term institutional and sophisticated investors, the focus should remain on core fundamentals such as token utility, network strength, regulatory advancements, and on-chain activity. He noted that traders with excessive leverage and insufficient risk buffers were the most affected.
The market sentiment remains cautious as traders navigate global economic challenges and await clearer policy directions. Analysts anticipate continued high volatility in the coming days as investors adjust their portfolios in anticipation of new US economic data and broader global market signals.
Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in this article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.