Bitcoin Dips Below $100 000 Again, Stirring Fears of a Deeper Correction

A Sudden Shift in Momentum

Bitcoin has once again fallen below the $100,000 mark, shaking investor confidence and reigniting debate about whether the world’s largest cryptocurrency has entered a new correction phase. The drop, which occurred overnight during thin weekend trading, pushed prices to a low near $97 800 before rebounding slightly.

For months, the price of Bitcoin has fluctuated between $95 000 and $115 000, with bulls and bears competing for control. The latest dip followed several sessions of sideways movement, suggesting weakening momentum. Market data show falling volumes and lighter liquidity across major exchanges, signalling that speculative enthusiasm has cooled.

Technical Weakness Meets Cautious Sentiment

Technical analysts note that Bitcoin failed to hold above its 50-day moving average, a level closely watched by traders. Momentum indicators such as the Relative Strength Index have slipped into neutral territory, indicating fading buying pressure.

Many traders interpret the move below $100 000 as a psychological blow. While round numbers hold no fundamental significance, they often shape short-term sentiment. Breaking below them can trigger automatic stop-loss orders, accelerating declines.

Macro Factors Adding Pressure

Macroeconomic factors continue to play a major role. The Federal Reserve’s cautious stance on further rate cuts has strengthened the U.S. dollar, drawing liquidity away from risk assets. Rising bond yields and subdued equity markets have compounded the pressure.

Geopolitical concerns and slower economic growth in Asia have also weighed on sentiment. Global investors appear reluctant to increase exposure to volatile assets until clearer signals emerge from central banks.

Derivatives Data Show Long Liquidations

Futures markets paint a clearer picture of the sell-off. Funding rates on perpetual contracts turned negative for the first time in weeks, meaning short sellers are now paying to maintain positions. Over $800 million in leveraged longs were liquidated within 24 hours, according to Coinglass data.

This wave of liquidations intensified downward momentum and may explain the swift move under $100 000. Analysts view it as another example of how derivatives activity amplifies volatility in crypto markets.

Institutional Traders Stay Calm

While retail investors appear nervous, institutional traders remain composed. Bitcoin exchange-traded funds saw only modest outflows, suggesting that long-term investors still view the dip as temporary. Many funds continue to accumulate positions gradually, treating price weakness as a buying opportunity.

The Long-Term Perspective

Historically, Bitcoin corrections of 20 to 30 percent are common during bull cycles. Analysts argue that the current pullback fits that pattern rather than marking the start of a bear market. On-chain metrics such as wallet accumulation and declining exchange reserves point toward steady confidence among long-term holders.

Bitcoin’s halving event expected in 2026 remains a major fundamental driver. Supply reductions have historically preceded strong multi-year rallies, and most institutional forecasts still project higher prices over the long run.

The Takeaway

The fall below $100 000 is unsettling but not catastrophic. It reflects a market taking a breather after months of exuberance. Traders are adjusting to macro realities while long-term investors quietly accumulate. Unless Bitcoin closes multiple weeks below $95 000 with rising volume, analysts see the move as part of a healthy consolidation.