Analyst: Bitcoin Drop Near $101,700 Could Confirm a New Bear Market

Bitcoin (BTC) took a huge bearish shift this previous weekend, with its value dipping beneath $104,000 on Friday October seventeenth, after days of zigzagging between $116,000 and $108,000.

This drop put the market in “excessive worry” for the primary time since April, main many observers to invest on how lengthy the bull cycle will final, with one warning that extra losses are coming.

A Critical Line within the Sand

In his “Big Sunday Report,” crypto dealer Dr. Profit told his over 439,000 followers on X that they need to have used the 115–125k zone to construct brief positions, warning that the market is now “extraordinarily bearish.”

He wrote that he had been “flagging” that space “so as to add shorts and promote” for the reason that finish of August, noting that BTC reached “126k, 1k greater than my max high situation of 125k” earlier than dropping on October 10, when it went as little as $101,000 on some buying and selling platforms.

The analyst singled out market psychology as central, writing plainly that:

“Markets are pushed by greed, at present I’ve not often seen a lot greed available in the market as now, and I’m talking about each the bear and bullish facet.”

His setup hinges on a particular technical threshold: a decisive break beneath $101,700.

“By breaking beneath $101,700 Bitcoin will break beneath its magic bull market line which might lastly affirm a bear market and silence these bulls as soon as for all!” wrote Dr. Profit.

The put up additionally talks about liquidity mechanics as a trigger, saying that current late-entering shorts, liquidations close to $116,500, and the packed positioning of short-term holders have made the worth construction weak.

Furthermore, the analyst used the $112,500 short-term holder realized value to point out that a lot of current consumers had misplaced cash and will put extra strain available on the market if BTC drops one other 5–10%.

Sentiment, Macro Events and Market Structure

This weekend’s value motion echoed that warning. At the time of writing, CoinGecko information confirmed that the primary cryptocurrency was buying and selling round $110,700, which is up 3.5% within the final 24 hours however down the identical quantity over the previous seven days.  The 14-day drop is near 10.6%, and the 30-day dip is smaller, at 4.1%.

Doctor Profit’s warnings arrive as broader sentiment has turned bitter. On October 17, reviews indicated that the Fear & Greed Index was at its lowest level since April and that about $900 billion in market worth had been misplaced previously few days. Some analysts say that the medium-term uptrend remains to be going strong if key helps maintain, whereas others say that liquidity operations linked to ETFs and leveraged positions make the market open to huge directional strikes.

The put up Analyst: Bitcoin Drop Near $101,700 Could Confirm a New Bear Market appeared first on CryptoPotato.