Market Correction Enters New Phase
Bitcoin has fallen below $100,000 for the first time since June, marking a new phase in the ongoing correction and raising questions about whether traders’ confidence is weakening after months of steady optimism.
The cryptocurrency dropped as much as 7.4% on Tuesday before managing a mild rebound, climbing back to roughly $104,000 on Wednesday. This level is still more than 20% below the record high it touched only a month ago. Analysts suggest that $112,000 has emerged as a key resistance point following repeated rejections, representing a make-or-break zone for the market.
Michaël van de Poppe, founder of MN Trading, described the current range as “the crucial level” for Bitcoin, noting that it’s where traders will be watching closely for any potential bounces. He observed, “There’s a ton of volatility on the markets right now,” and suggested that while $112,000 has proven difficult to reclaim, this zone could attract buyers if sentiment stabilizes.
This remains to be the crucial level for #Bitcoin.
Tons of volatility on the markets at this point, and I think it will remain like that, but given the fact that $112K rejected, this has become the most important level to check for potential bounces. pic.twitter.com/WRxrDKcr53
— Michaël van de Poppe (@CryptoMichNL) November 5, 2025
Spot Selling Dominates as Leverage Retreats
Unlike October’s flash crash, which was caused by cascading liquidations in the futures market, the current selloff appears to be rooted in steady selling on the spot market. This marks a major shift in Bitcoin’s behavior, as recent downturns have typically been triggered by overleveraged traders being forced to unwind positions.
Data from CoinGlass indicates that around $2 billion worth of crypto positions were liquidated in the past 24 hours. This figure is significantly less than the $19 billion in forced selling observed during October’s collapse, suggesting that this decline is less about panic-driven liquidations and more about a gradual loss of confidence.
Market researcher Markus Thielen of 10x Research stated that the change in dynamics points to “a more structural form of selling.” According to his data, long-term holders have offloaded approximately 400,000 BTC, valued at about $45 billion. Thielen commented, “We’re witnessing conviction eroding. The imbalance between old holders exiting and new investors entering the market is now steering the price direction.”
Profit-Taking Among Veteran Holders
Further analysis from K33 Research supports this pattern. Vetle Lunde, the firm’s head of research, noted that more than 319,000 Bitcoin have been “reactivated” in the past month. Many of these coins had been dormant for six to twelve months, which is an indicator of profit-taking rather than internal reshuffling.
Lunde explained that while some of this activity might stem from exchanges moving reserves, a substantial portion represents actual selling. He stated, “We’re seeing older wallets distributing coins to the market, which is typically a bearish signal when done at this scale.”
Thielen also highlighted the role of “mega whales”—wallets holding between 1,000 and 10,000 Bitcoin—that began trimming positions earlier this year. Institutional buyers attempted to absorb that supply throughout the summer, but since the October 10 crash, the inflow of new capital has weakened considerably. Thielen observed, “We broke through critical on-chain indicators, and many investors are now underwater.”
Whale Accumulation Drops Sharply
Smaller whales—wallets holding between 100 and 1,000 BTC—have also reduced their accumulation pace. Thielen believes this lack of demand among mid-sized holders is a key factor preventing a strong rebound. He commented, “The whales are just not buying. We’re seeing a clear cooling-off period after an intense accumulation phase earlier this year.”
According to Thielen, this process could extend well into 2026 if historical patterns repeat. During the 2021–2022 bear market, large holders sold over one million Bitcoin over nearly a year, triggering an extended consolidation phase. He added, “If this unfolds at a similar pace, we could see another six months of slow distribution before sentiment improves.”
What’s Next for Bitcoin?
While Thielen does not predict a catastrophic plunge, he anticipates that the market will remain range-bound or drift slightly lower. He stated, “I’m not calling for a major collapse, but consolidation seems the most likely scenario,” identifying $85,000 as his downside target before a potential turnaround.
Concurrently, analysts like van de Poppe believe that technical conditions could support a short-term rebound. With leverage largely flushed out and oversold indicators flashing on several timeframes, Bitcoin could stabilize if long-term buyers re-enter the market. However, until that occurs, the market remains vulnerable to fresh declines if sentiment fails to recover.
For now, Bitcoin is caught between structural selling pressure and technical relief, leaving traders watching closely to determine whether $100,000 can hold as a lasting support zone or if a deeper correction lies ahead.