Bitcoin (BTC) has teased the potential onset of its bear market after dropping to a four-month low. The flagship coin dropped over 5% on Tuesday, November 4, to reach a range low of around $99,955 before rebounding to trade about $101k at press time.
The sudden Bitcoin price selloff influenced the wider altcoin market led by Ethereum (ETH), XRP, BNB, and Solana (SOL). As such, the total crypto market cap has shed nearly $400 billion in valuation during the past 24 hours.
Why is Bitcoin Price Dropping Today?
Whale capitulation amid retail conviction
According to on-chain data analysis, Bitcoin whales have accelerated booking profits in the recent past while retail traders have continuously bought the dips. Bitcoin wallets with a balance of between 10 and 10k sold nearly 38.4k BTCs since October 12 to date.
Source: Santiment
Meanwhile, retail traders, with a balance of above 0.01 BTCs have accumulated 415 coins since October 12.
“Bulls need to see this trend completely flip in order to expect a sustained price rebound for all of crypto. Markets rise when key stakeholders accumulate the coins that small wallets shed,” Santiment noted.
Heavy long liquidation: long squeeze inbound
Following the ongoing crypto bloodbath, more than $1.1 billion was liquidated from leveraged traders. Notably, around $1.01 billion involved long traders, thus fueling the impact of a long squeeze.
Midterm fear of further capitulation to fill a CME gap at $92k
Following the sustained choppy crypto market, CoinMarketCap’s Fear and Greed index dropped to around 27/100, signaling extreme traders’ fear.
The fear of further capitulation is heavily rooted in the fact that the Bitcoin CME Futures has an unfilled gap between $92k and $93k.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.