Profit-Taking Hits Bitcoin as Market Enters ‘Fall Season’, Morgan Stanley Flags Short-Term Caution
Morgan Stanley has suggested Bitcoin traders to take income as the world’s largest cryptocurrency enters what analysts are calling its “fall season.”
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According to Denny Galindo, an funding strategist at Morgan Stanley Wealth Management, Bitcoin follows a four-year cycle sample, characterised by three years of beneficial properties adopted by a 12 months of losses. Speaking on the Crypto Goes Mainstream podcast, Galindo likened the present part to a harvest interval.
“We are within the fall season proper now,” he mentioned. “Fall is the time for harvest. So, it’s the time you wish to take your beneficial properties.” Bitcoin dropped beneath $99,000 on November 5, falling beneath its 365-day transferring common, a transfer that many analysts view as a technical bear market sign.
Bitcoin Faces Pressure Amid Slowing Liquidity
The decline comes as profit-taking and cooling enthusiasm in AI and tech shares weigh on broader threat belongings.
Bitcoin slipped practically 3% to round $103,000 after briefly touching $107,000 earlier within the week. Market analysts at CoinSwitch observe that quick help lies between $100,000 and $102,000, whereas resistance stays close to $110,000.
Liquidity situations have additionally weakened. Market-maker Wintermute reviews that key liquidity sources, together with stablecoins, ETFs, and digital asset treasuries, have reached a plateau.
The slowdown may improve volatility as merchants unwind leveraged positions. Ethereum fell by over 3.5% to $3,432, whereas main altcoins like Solana, Cardano, and Hyperliquid recorded losses exceeding 8%, dragging the full crypto market capitalization down 0.6% to $3.52 trillion.
Institutional Adoption Grows Despite Short-Term Risks
Despite the latest pullback, Morgan Stanley stays optimistic about Bitcoin’s long-term function as a macro hedge. Michael Cyprys, head of U.S. brokers and asset managers analysis on the agency, famous that “institutional traders more and more view Bitcoin as digital gold and a hedge in opposition to inflation.”
Spot Bitcoin ETFs now maintain over $137 billion in belongings, whereas Ethereum ETFs account for $22.4 billion, in response to SoSoWorth knowledge.
Meanwhile, firms like London BTC Company Limited are increasing operations in North America, leveraging renewable power to maintain mining profitability. Analysts say such developments underscore the maturing construction of the crypto market, even as short-term sentiment cools.
Related Reading: Brazil’s Central Bank Introduces Stricter Crypto Regulations To Combat Scams And Fraud
For now, Morgan Stanley’s message is obvious, Bitcoin’s “fall season” has begun, making this an opportune second for traders to safe income earlier than potential volatility returns.
Cover picture from ChatGPT, BTCUSD chart from Tradingview
