Warning! When BTC Falls Below $100,000: Is the Next Wave of Risk Coming?

BTC Drops Below $100,000: What’s Going On?

On November 5, 2025, Bitcoin (BTC) plunged to approximately $99,900 across major trading platforms, marking its first return to this level since June. From its October peak near $126,000, BTC has now declined by over 20%. This drop isn’t just about the numbers—it signals a breach of key support, with the market showing signs of panic and intensified selling pressure.

Three Core Drivers Behind the Decline

Technical Support Breakdown: The $100,000 level was widely seen as both a psychological and technical floor. Once breached, a wave of stop-loss orders triggered, accelerating the slide.

Weak Macro Backdrop: Factors including interest rate expectations, tighter liquidity, and heightened global economic uncertainty are weighing on risk assets such as Bitcoin.

Leverage and Liquidations: Heavy use of leverage in the market led to forced liquidations, with estimates reaching several billion dollars, fueling the panic sell-off.

Technical Analysis: Bearish Momentum Leads, Short-Term Downside Risks Persist

Chart: https://www.gate.com/trade/BTC_USDT

On the 1-hour candlestick chart, BTC currently sits near 99,357 USDT, down about 7.3%. The short-term pattern shows a clear downward trend:

• Moving averages (MA5/10/30/60) are fully aligned in bearish formation. The short-term MA5 sits at $100,605, breaking below the mid-term MA30 (≈ $103,832), signaling ongoing downward pressure.
• Trading volume has picked up, confirming sellers are in control. Notably, a high-volume lower wick formed near $98,951—showing some support exists, but rebound strength is limited.
• Candlestick Pattern: Multiple consecutive bearish candles with short-term rallies capped by moving averages, forming a classic “descending channel.”
• Support & Resistance: Near-term support sits at $98,950 (if breached, $97,000 may be tested). Resistance above is at $101,000–$102,500.

Overall verdict: If BTC fails to reclaim MA10, short-term momentum remains weak. New investors should avoid blind “bottom fishing” and wait for signs of declining volume and moving average convergence before acting.

How Does This Impact New Investors?

For those just entering the crypto space, this breakdown carries several implications:

• Psychological Stress: Seeing the iconic $100,000 level breached can spark fear or anxiety, leading to impulsive decisions.
• Heightened Risk Exposure: If holding large positions or having entered at high prices, losses can quickly mount as prices fall.
• Opportunities and Traps: A support break could be a buying opportunity (if you’re bullish long-term) or signal deeper declines (if trend reverses). Some institutional analysts warn that if $100,000 fails, BTC could drop to $72,000.

How to Build a Simple Strategy in This Market?

• Set Stop-Loss/Take-Profit Levels: Choose exit points based on your risk tolerance, such as “exit below $90,000” or “sell part at $110,000.”
• Staggered Entry Instead of Lump Sum: If you’re bullish long-term, consider entering in batches to reduce single-entry risk.
• Adjust Expectations: Don’t treat $100,000 as a guaranteed bottom—focus on market trends, not just price levels.
• Maintain Liquidity and Emergency Reserves: Avoid going “all in”—keep some cash or stable assets on hand for volatility.

Conclusion: What’s the Next Move?

In summary, BTC’s drop below $100,000 is more than a short-term fluctuation—it could signal a key shift in market structure. For new investors, the main takeaway is: don’t panic, don’t chase rallies, focus on risk management, and keep room for opportunity. If your long-term thesis remains intact, crypto can still be part of your portfolio—but remember, it’s a high-risk, high-volatility asset. If prices stabilize and rebound, the next bull run may begin; if support continues to fail, further declines are possible. We’ll keep monitoring market signals closely.