Key Notes
- Bitcoin continues to trade below the critical $112,000 mark amid global market stress.
- A $19 billion futures wipeout sparks fears of a deeper correction.
- Analysts warn of fragility but see long-term recovery potential.
Bitcoin
BTC
$110 599
24h volatility:
2.4%
Market cap:
$2.21 T
Vol. 24h:
$66.72 B
has once again slipped below the crucial $112,000 level, a zone that has historically acted as both support and resistance. The downturn is triggered by mounting macroeconomic concerns and a staggering $19 billion futures liquidation across exchanges.
According to Glassnode, the crypto market is entering a “reset phase,” marked by a large-scale leverage flush, slowing ETF inflows, and surging volatility. The platform called the current situation “an Early Black Friday,” signaling a period of deep discount and fear in the market.
At the time of writing, Bitcoin is trading around $111,000, down roughly 9% over the past week. The decline below the key $117,000–$114,000 cost-basis zone, which began on Oct. 10, has left many top buyers at a loss.
On-chain data shows continued selling from long-term holders since July and reduced institutional interest, as Bitcoin ETFs recorded a 2,300 BTC outflow this week.
Meanwhile, the futures market experienced a dramatic cleanup. The Estimated Leverage Ratio fell to multi-month lows, and funding rates plunged to levels not seen since the 2022 FTX collapse. These are both signs of intense liquidation and peak market fear.
BTC futures estimated leverage ratio | Source: Glassnode
Analysts Split on Bitcoin’s Next Move
The options market has shown early signs of stabilization, with open interest rebounding even as volatility surged to 76%.
Bitcoin options open interest | Source: Glassnode
Short-term options remain “put-rich,” reflecting cautious sentiment. However, some traders view this as the final stage of a market reset before Bitcoin price recovery.
Experts like Ted believe Bitcoin could reclaim new highs by 2026, advising traders to use current dips as buying opportunities. He added that as long as the $102,000 level holds, Bitcoin will be in a bull run.
However, crypto analyst Jason Pizzino noted on X that a move below $108,000 puts the bull market on “thin ice.”
However, he also pointed out that other assets like gold and stocks remain near record highs, suggesting the broader economic cycle still supports long-term growth.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
Parth Dubey on LinkedIn
Source: https://www.coinspeaker.com/bitcoin-is-flirting-with-danger-early-black-friday/
