Bitcoin Support Weakens as Demand Falters, Risking $100K

The world’s largest cryptocurrency by market capitalization has failed to maintain its critical consolidation range between $106,000 and $116,000, according to Bitfinex Alpha’s latest analysis. This breakdown signals a significant weakening in buying power and demonstrates little conviction from bullish investors. The digital asset briefly climbed to $116,000 last week, offering temporary relief to traders, but the rally proved unsustainable as long-term holders began selling without corresponding institutional buying support.

At the time of writing, Bitcoin was trading below $104,000 according to CoinGecko data, dangerously close to breaching the crucial $106,000 support level that has served as a psychological floor for the market. The failure to hold within the established range has led to declining investor confidence and deteriorating market sentiment, creating a precarious situation for the leading crypto asset.

The options market reveals growing uncertainty among traders, with price movements shrinking significantly according to Bitfinex Alpha’s observations. This contraction in volatility suggests market participants are becoming increasingly cautious about Bitcoin’s directional outlook, particularly following the substantial sell-off on October 10th. The platform noted that traders are opting for a wait-and-see approach rather than taking decisive positions in either direction.

Compounding the technical weakness is the notable absence of institutional buyers stepping in to absorb selling pressure from long-term holders. On-chain analytics data reveals that long-term investors are liquidating approximately 104,000 BTC each month, indicating a significant profit-taking trend rather than a holding strategy. Meanwhile, short-term traders are losing confidence as their profit margins shrink, creating a vacuum in market leadership.

The Federal Open Market Committee’s recent meeting introduced additional uncertainty into the market, presenting unclear signals about economic growth and inflation trajectories. These ambiguous messages from the FOMC have made investors less willing to take risks across asset classes, including cryptocurrencies. The overall economic environment has slowed Bitcoin’s development and recovery prospects, according to the Bitfinex Alpha update.

The analysis highlights that without renewed flows from ETFs, Bitcoin’s price is likely to remain trapped in its current range with potential for further declines. The dependency on ETF inflows has become increasingly apparent, as demonstrated by Tuesday’s price action when BTC experienced notable downward pressure. The cryptocurrency’s path to recovery appears contingent on either breaking above $116,000 with strong trading activity or seeing renewed institutional interest through ETF channels.

As November approaches, the market faces a critical juncture. A break below the current support area could trigger a slide toward the $100,000 psychological level, while a convincing move above $116,000 with substantial volume could signal the beginning of a genuine recovery. The coming weeks will test whether Bitcoin can overcome its current fragility or succumb to the mounting pressure from weakening demand and macroeconomic uncertainty.