**Bitcoin’s Slide Below 100K: Causes, Key Support Levels, and What’s Next**
Bitcoin’s recent slide below the $100,000 mark has caught the attention of investors and analysts alike. A mix of macroeconomic shifts, sharp ETF outflows, and dwindling liquidity have all contributed to increased market volatility and heightened sensitivity to economic developments. Over $600 million in long liquidations have further intensified selling pressure, with concerns about exchanges fueling additional volatility in derivatives markets.
Despite the price correction, on-chain data shows continued accumulation, with the Realized Cap hitting all-time highs and the 6-12 month holder cost basis around $94,000 providing some underlying support. In this article, we break down the main drivers behind Bitcoin’s downturn, examine the role of ETF outflows and liquidity troubles, and highlight key support levels to watch. Stay informed as we explore what these developments mean for the crypto market’s stability and the prospects for recovery heading into 2025.
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### What Is Causing Bitcoin’s Recent Price Pressure Below 100K?
Bitcoin’s price dip below $100,000 is largely due to a combination of macroeconomic changes and market-specific issues. Expectations for Federal Reserve rate cuts in December have faded as inflation remains stubbornly high, prompting investors to cut their exposure to riskier assets such as cryptocurrencies.
This cautious shift in sentiment has been compounded by substantial ETF outflows, totaling over $1.1 billion across just two sessions in mid-November. Simultaneously, a squeeze on market liquidity has further amplified price swings, making Bitcoin especially sensitive to any new economic signals.
Despite these headwinds, many on-chain indicators suggest the current downturn is more of a corrective phase than a full-blown bear market reversal.
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### How Are ETF Outflows and Liquidity Drops Impacting Bitcoin’s Market?
The recent surge in ETF outflows has greatly reduced institutional demand for Bitcoin, with nearly $1.1 billion being withdrawn in a short period. This turnaround from previous inflows has suppressed spot buying and pushed Bitcoin’s price below $100,000 as the market grows ever more reactive to outside influences.
Liquidity issues have only exacerbated the situation. Thinner order books mean that moderate selling now results in disproportionately large price movements. According to CryptoQuant data, exchange reserves have somewhat stabilized, but a broader drop in trading volume reflects heightened caution among participants.
Analysts at Glassnode noted that the 7-day moving average of exchange inflows spiked during the sell-off, signaling profit-taking by short-term holders. As a result, Bitcoin has been pushed into the $92,000-$94,000 range—a historically significant support area from previous corrections. If this zone fails to hold, further declines toward the $85,000 level could follow, according to on-chain research.
CryptoQuant CEO Ki Young Ju emphasizes that short-term sentiment remains fearful, but the absence of widespread capital flight—evidenced by stable network activity—offers some reassurance. Ju recently stated that such outflows are often cyclical and can frequently precede renewed accumulation phases in Bitcoin’s history.
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### Frequently Asked Questions
#### What Are the Main Support Levels for Bitcoin During This Downturn?
Bitcoin’s primary support during the current correction lies in the $92,000-$94,000 zone, which aligns with the cost basis for 6-12 month holders. Historically, this level has served as a critical floor during market corrections. Glassnode’s on-chain metrics suggest that holding above $94,000 helps maintain long-term holder confidence, with further downside more likely limited to the $85,000 range if bearish pressure persists.
#### How Might Federal Reserve Policies Affect Bitcoin’s Recovery in 2026?
The Federal Reserve’s approach to interest rates will be crucial for shaping Bitcoin’s future recovery. Should inflation ease and the Fed resume rate cuts in 2026, risk appetite could rebound, supporting a return of ETF inflows. Combined with reduced market leverage and continued on-chain accumulation, these conditions set the stage for gradual recovery, with renewed bullish momentum expected if macroeconomic fundamentals improve.
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### Key Takeaways
– **Macroeconomic Shifts Drive Pressure:** Weakening prospects for rate cuts and ongoing inflation have dampened investor sentiment, pushing Bitcoin below $100,000 and putting more focus on crucial support levels.
– **Liquidations Amplify Volatility:** Over $600 million in long position closures—as supports failed—accelerated the price correction, with exchange-related rumors boosting trader caution.
– **On-Chain Strength Persists:** High Realized Cap and a stable holder cost basis reflect persistent accumulation, positioning Bitcoin for a potential recovery as macroeconomic conditions improve in 2026.
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### Conclusion
While Bitcoin’s move below $100,000 has raised concerns, both on-chain data and market fundamentals suggest this is likely a corrective phase rather than the start of a deeper bear market. Keep a close eye on support levels and macro trends, as these will shape the path to stabilization and eventual recovery for crypto investors looking ahead to 2025 and beyond.
https://bitcoinethereumnews.com/bitcoin/bitcoin-tests-92k-94k-support-amid-etf-outflows-and-fading-rate-cut-hopes/
