Bitcoin Falls Below $100,000: Crypto Bull Market End or Beginning?

Bitcoin, the cryptocurrency market leader with a market worth of $1.9 trillion, fell below $100,000. Many investors and experts are wondering whether this three-day flash dump indicates the end of the bull market or a healthy correction.

Temporary Slip or Trend Reversal?

This week, Bitcoin broke the $100,000 support level after eight days of stubbornness. Market experts cite various causes of this fall. Market makers drove the price up to entice traders to initiate long bets at $98,000, creating liquidity.

After depleting this liquidity, market makers utilized Federal Reserve Chairman Jerome Powell's speech to force prices down, filling price inefficiencies at $93,744 (50%) and $90,513 (100%).

Analysts said, "The Bitcoin decrease was essential to fill inefficiencies below the price of $93,744 for 50% and $90,513 for 100%. The inefficiency rule requires traders to fill 50% or 100% of inefficiency.

They said market makers "purposely took the price upward to induce traders to open long positions, increasing liquidity at $98,000." Market makers exhausted at $98,800 decided to wipe away liquidity and utilized Powell's comments to accelerate the downward momentum.

Since the $93,788-$92,200 level is strong support, experts expect a recovery to $101,000 before a pullback or trend continuation. This zone contains several purchase orders, matching the 50% inefficiency filled lately. From here, a rebound seems likely.

BlackRock, Institutions Show Bitcoin Confidence

BlackRock, a renowned asset management business, has made news for its large Bitcoin investments despite volatility. Arkham Intelligence reports that BlackRock acquired Bitcoin while other ETFs sold and currently holds 122.6K BTC. BlackRock has 0.6% of the Bitcoin supply, ranking 11th.

The Fear and Greed Index, at 62, shows investors are not afraid. Instead, many see the drop below $100,000 as a buying opportunity and foresee a comeback.

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