Bitcoin Dips Below $100,000 Twice In A Week – Is The Bottom In?
Synopsis
The last time Bitcoin hit these levels was in late June, earlier this year.
Bitcoin (BTC) dipped below $100,000 for the second time this week as macroeconomic pressure continued to weigh on the cryptocurrency amid the ongoing government shutdown.
Early Friday trade saw BTC’s price fall more than 3% to $99,800, according to CoinGecko data, after first dipping to $99,607 on Tuesday. The last time Bitcoin hit these levels was in late June, earlier this year.
On Stocktwits, retail sentiment around the apex cryptocurrency dipped to ‘neutral’ from ‘bullish’ over the past day, as chatter remained at ‘high’ levels. The selloff mirrors weakness in AI stocks and broader tech indices, with the Nasdaq declining.
One bearish trader on the platform speculated that perhaps Bitcoin’s support level was now becoming the new resistance level.
Is This Bitcoin Bottom?
According to crypto trader Scott Melker, known on social media as ‘The Wolf Of All Streets’, the bounce could be deceptive. He warned investors to watch for additional signals before assuming the bottom is in, pointing to historical price action.
On-chain analytics firm Glassnode reported in its weekly report that options data suggest continued fear among market participants. According to the firm, put-call volumes indicate little confidence in a stable bottom. “Bitcoin is retesting the $100,000 level after short-term holders have capitulated. Puts surged during the drop, then calls spiked as traders played the rebound near $100K. Even then, puts rose again, suggesting markets expect a retest, and remain hedged,” the report noted.
The iShares Bitcoin ETF (IBIT) edged 1% lower at market open on Friday with retail sentiment on Stocktwits around the fund trending in ‘bearish’ territory over the past day, even as chatter was a ‘high’ levels. Similarly, the Fidelity Wise Origin Bitcoin Fund (FBTC) also dipped around 1% in morning trade, with retail sentiment around the ETF in the ‘bearish’ zone, accompanied by ‘high’ levels of chatter.
Read also: XRP, Bitcoin, Ethereum Extend Losses Despite ETF Boost But Dogecoin Defies The Drop
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