Bitcoin’s November slump rolled on Friday with another heavy leg lower, briefly slipping under $81,000 before recovering some ground.
Bitcoin was trading near $93,000 intraday on Thursday and is almost 13% down on the week. That’s a sharp reversal from levels above $107,000 seen last week Tuesday.
Sentiment has collapsed just as quickly. The Fear and Greed Index sat at 11 for a second straight week, firmly in extreme fear territory.
Options data shows surging demand for protection around $85,000 and $80,000 strikes, especially for contracts expiring later this month. Spot buyers are scarce, and investors who bought Bitcoin over the past six months are sitting deep in losses.
Many said Bitcoin would not fall below $85,000 – and fell below it did. Some analysts are now suggesting the price could eventually reach $10,000.
$10,000 may be a bit of stretch, and these types of calls need to be taken with pinch of salt, but the market today is very different. It’s no longer “bedroom traders” pumping and dumping. Institutions are now heavily involved, and they have the muscle to push Bitcoin lower when sentiment is this fragile.
Where Bitcoin will eventually bottom out is anybody’s guess. For now, trying to pick the low is a fool’s game. Let the market settle before starting any bottom talk.
Stay safe!