Bitcoin price crashes below $100K, what’s triggering the sell-off today?

Bitcoin price has fallen off the $100,000 threshold after fighting to stay above the mark. At the moment, it is trading at $99,926. What triggered the sell-off?

The price of Bitcoin has officially dipped below the psychological $100,000 mark, indicating a strong continuation of bearish momentum on the market. For the past few days, BTC has been struggling to maintain key support zones, having failed to hold the $110,000 to $112,000 range earlier this week.

The price drop marks the weakest Bitcoin’s ever been since its descent in late June during a broader crypto market correction. At the time, BTC was able to bounce back thanks to continued buying, which catapulted the price back to $101,300 within minutes.

This time, Bitcoin (BTC) has dropped by 3.11% in the past day, continuing its declining streak from earlier this week as it experienced a decrease of 9% within the past seven days.

According to data from TradingView, the 30-day moving average has been on a sharp downward trend, currently sitting at around $101,887 as the token’s price drops below the line. This indicates that sellers still have control over the short-term momentum.

Bitcoin’s break beneath the $100,000 mark has now turned the $100,000 to $102,000 range into an immediate resistance zone. This means that unless Bitcoin price manages to reclaim this range with strong volume, any attempts at reclaiming $100k would likely be short-lived.

Moreover, the next key support level lies around $99,000, which is then followed by the $97,500 to $95,000 area. When BTC starts to drop further down, buyers may attempt to stabilize the price amidst the decline.

Historically, round-numbered levels like $100,000 tend to act as emotional anchors for traders. This would mean that a fall below these levels could potentially trigger a domino effect of stop-loss orders and panic selling that could add to the downside pressure.

The Relative Strength Index sits at 32, which indicates that it is fast-approaching oversold territory; suggesting that while selling pressure is still dominating the market, BTC could experience a short-term rebound or a sideways consolidation before its next major move.

However, it appears that bearish momentum is likely to continue unless Bitcoin’s RSI can climb back to the previous neutral line at 50.

What’s causing Bitcoin price to drop?

Bitcoin’s drop below the $100,000 level comes after a week of increased selling pressure, which is largely driven by institutional outflows and changes in investor sentiment. On Nov. 7, Bitcoin exchange traded-funds recorded inflows of $240 million, ending its six-day outflow streak.

However this was not enough to sustain the price above $100,000. The spot ETFs backed by Bitcoin had already lost more than $2 billion in exit funds in the days past. November has proven to be a challenging month for U.S spot Bitcoin ETFs as it has seen $661 million in net outflows, a sharp contrast compared to October and September which saw $3.53 billion and $3.42 billion in inflows, respectively.

In addition, broader macroeconomic factors have played a key part in BTC’s downfall. Global markets have turned away from risk-laden assets due to persistent high interest rates and concerns about slow economic growth. As a result, investors tend to move away from volatile assets like crypto and move towards more conservative assets like government bonds or cash.

As previously reported by crypto.news, Bitcoin price could retest the $91,000 to $97,000 range as the Market Value to Realized Value ratio forms a bearish divergence. The MVRV ratio, which tracks unrealized profit across the network, suggests that buyers have taken a more cautious approach this cycle, which could explain why Bitcoin price has seen significantly less accumulation action.