5 November 2025,06:15
Daily Market Analysis New
5 November 2025, 06:15
Key Takeaways:
*Bitcoin dropped below $100,000, down over 20% from its record high a month ago.
*Aggressive liquidations in leveraged positions triggered broad crypto and equity selloffs.
*Global risk-off sentiment intensified amid concerns over the U.S. government shutdown and potential Fed tightening.
Market Summary:
Bitcoin has wiped out nearly all its summer gains, tumbling as much as 7.4% to $96,794 on Tuesday in New York — marking its first dip below $100,000 since June. The cryptocurrency is now down more than 20% from its recent all-time high, a drawdown that mirrors a broader risk-off shift across global markets. The correction began in early October, when a wave of leveraged liquidations erased billions in bullish crypto positions, prompting institutional investors to retreat to the sidelines.
Even with funding costs turning favorable, open interest in Bitcoin futures remains subdued, suggesting traders are hesitant to re-engage after the market’s sharp unwind. The broader crypto ecosystem has also seen liquidity dry up, amplifying volatility. This environment has forced many investors to raise cash, with spillover effects extending to gold, where some traders liquidated positions to meet margin requirements or cover leveraged losses elsewhere.
The macro backdrop has provided little relief. Risk sentiment remains fragile amid ongoing U.S. government shutdown concerns, while the Federal Reserve’s signal of a potential return to monetary tightening has further rattled investor confidence. The absence of new crypto-friendly regulatory initiatives in Washington — coupled with policymakers’ focus on fiscal and trade issues — has left the digital asset space in a policy vacuum.
Opinions across Wall Street are sharply divided. Some strategists argue that Bitcoin could stabilize near the $100,000 psychological level and stage a short-term technical rebound. Others warn that the market remains vulnerable, with institutional outflows and weak regulatory clarity likely to cap upside momentum. PU Prime analysts expect volatility to persist, noting that without a clear catalyst or supportive policy stance, investor sentiment could remain fragile through the coming weeks.
Technical Analysis
BTC/USD, H4:
Bitcoin slumped sharply after breaking below the key psychological level of 106,235.00, now testing the 100,000.00 support zone. The MACD indicates strong bearish momentum, while the RSI at 32 signals potential for further downside pressure. A confirmed break below 100,000.00 could extend losses toward the next support at 91,785.00, whereas any rebound above the current level may be capped by resistance near 106,235.00.
Potential Risks: Broader risk sentiment, U.S. policy shifts, and developments in global tech and AI sectors remain key influences for near-term direction.
Resistance Levels: 106,235.00, 117,280.00
Support Levels: 100,000.00, 91,785.00
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