The value of Bitcoin (BTC) took a nosedive to $104,000 today, shaken by widespread macroeconomic anxiety and a significant withdrawal from crypto-specific investments. The trigger for this decline was an unprecedented net outflow of $530.9 million from U.S. Spot Bitcoin ETFs on October 16.
According to Andrew Tate, the price of Bitcoin might descend even further, potentially reaching as low as $26,000.
Further Declines Possible
Tate argues that the price could continue its downward trajectory due to investors’ overconfidence in believing the market has already hit rock bottom.
“Everyone is going all-in because they think it can’t drop any lower,” Tate explained in a recent video. “But that’s precisely when things tend to worsen. The more convinced you are that it won’t fall further, the higher the chances it will.”
Tate notes that many crypto enthusiasts are trapped in a risky cycle of borrowing funds to heavily invest long-term, underestimating potential declines.
This excessive leveraging only adds fuel to market instability. While numerous investors have already faced significant losses, they cling onto hope for recovery through one substantial trade.
For Tate, this misplaced confidence sets them up for failure: “It can always deteriorate further until optimism vanishes and everyone runs out of money,” he stated.
He believes once all optimism is drained from the market landscape; Bitcoin’s value will surge back towards new record highs.
Panic-Induced Market Liquidations
The escalating fear is already impacting markets significantly—over $230 billion evaporated from cryptocurrency valuations within just one day—with major players like Bitcoin and Ethereum experiencing drops between 6% and 8% respectively.
Altcoins%2C memecoins%2C NFTs%2C along with ETFs also suffered considerable setbacks.%20More than %24556 million worth liquidations occurred primarily stemming from long positions.
Related: Bitcoin’s Q4 Setup: $100K First, $88K Risk, $125K Breakout Clears Records
The Potential Bottom for Bitcoin?
As per recent updates,%20Bitcoin currently trades at %24105%252C154 after briefly plummeting downwards during what some dubbed another ‘second Black Friday.’ This decline coincided alongside increased risk aversion driven by financial uncertainties among US regional banks.
Several crucial support levels have been breached including breaking below its200-day SMA positioned around&10752O analysts caution against possible continued downside risks:
Block_Diversity highlights key levels worth monitoring include&101K5 K95 K8 Sykodelic considers critical support resting upon historical RSI lows &ldquoThe weekly close holds immense importance
With Fear& Greed Index indicating extreme fear territory some experts suggest short-term rebound prospects loom ahead
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