‘Violent selloff, not terminal’: Analysts see bitcoin consolidating after leverage flush dips price below $100,000

Bitcoin broke below $100,000 late on Tuesday, for the first time since May 2025, as billions in leveraged positions were liquidated during yet another massive deleveraging event following the Oct. 10 flush.

According to The Block’s price page, Bitcoin plunged to an intraday low of $99,980 before stabilizing on Wednesday at around $101,700. The recovery cushioned a broad crypto market reprieve.

Nic Puckrin, co-founder of The Coin Bureau, said the brief return below six figures carries psychological weight but not necessarily structural damage.

“Bitcoin under $100,000 tends to fill crypto investors with an almost biblical level of dread,” Puckrin said. “But despite the drop, BTC is only about 20% below its all-time high. This is crypto, not the bond market. A 20% fall is often just a buying opportunity.”

Macro pressures meet a leverage unwind

More than $1.7 billion in estimated liquidations were recorded across exchanges, including over $1.3 billion in long positions, according to CoinGlass data. The total crypto market capitalization fell over 2% to $3.4 trillion, erasing nearly $289 billion in value within 24 hours as major altcoins like ether and SOL tumbled.

However, the figure likely understates the true scale, as major derivatives venues like Binance and OKX publish liquidation data intermittently.

A mix of macro unease and mechanical deleveraging triggered the sell-off, analysts shared with The Block. A global risk-off wave swept across equities and commodities, with AI-linked tech stocks leading losses on Wall Street. As capital retreated to cash and Treasuries, crypto — still viewed as a high-beta risk asset — bore the brunt.

ETF redemptions deepened the slide. Bitcoin spot ETFs saw $578 million in outflows on Nov. 4, marking a fifth straight day of redemptions. Ethereum ETFs lost $219 million, while Solana ETFs extended their winning streak with $14.8 million in inflows.

Nevertheless, one macro headline offered relief. China announced a one-year suspension of the 24% additional tariff on U.S. goods, a signal of incremental thawing in trade tensions. Global markets briefly steadied on the news, with Bitcoin recovering above six figures after the initial plunge.

Coin Bureau’s co-founder added that the recent selloff highlights Bitcoin’s dual nature as both an institutional and high-risk asset. Moreover, Puckrin argued that the broader bullish thesis remains unchanged, and a $150,000 cycle top is still possible.

“While I don’t believe this marks the end of the bull market, the swings are getting wilder,” Puckrin said. “The key support to watch is the 50-week EMA near $101,000. If we hold above that psychological barrier this week, the structure remains intact. Longer term, I still see $150,000 as a likely top for this cycle, but it’s just a bumpier ride from here.”

The road ahead

Timothy Misir, head of research at BRN, echoed Puckrin’s view that Tuesday’s move was a structural reset, not full capitulation. The expert stated that the leverage cleanse sets a leaner base for future price action.

“Long-term holders remain largely unmoved,” Misir wrote, but warned that “conviction must return through ETF inflows or fresh corporate demand.”

For now, Bitcoin’s onchain cost basis support lies between $98,000 and $100,000, with resistance forming around $107,000–$110,000. Analysts agree that unless ETF inflows revive or macro conditions improve, BTC is likely to consolidate in this range as the market rebuilds conviction.

“Tuesday’s sell-off was violent but not terminal,” Misir shared with The Block. “This was leverage, not belief, exiting the system. The system is leaner, healthier, and less vulnerable to cascading risk now. But sentiment remains brittle, and patience remains the most valuable position on the board.”