Profit-Taking Hits Bitcoin as Market Enters ‘Fall Season’, Morgan Stanley Flags Short-Term Caution

Morgan Stanley has advised Bitcoin investors to take profits as the world’s largest cryptocurrency enters what analysts are calling its “fall season.”

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According to Denny Galindo, an investment strategist at Morgan Stanley Wealth Management, Bitcoin follows a four-year cycle pattern, characterized by three years of gains followed by a year of losses. Speaking on the Crypto Goes Mainstream podcast, Galindo likened the current phase to a harvest period.

“We are in the fall season right now,” he said. “Fall is the time for harvest. So, it’s the time you want to take your gains.” Bitcoin dropped below $99,000 on November 5, falling beneath its 365-day moving average, a move that many analysts view as a technical bear market signal.

Bitcoin Faces Pressure Amid Slowing Liquidity

The decline comes as profit-taking and cooling enthusiasm in AI and tech stocks weigh on broader risk assets.

Bitcoin slipped nearly 3% to around $103,000 after briefly touching $107,000 earlier in the week. Market analysts at CoinSwitch note that immediate support lies between $100,000 and $102,000, while resistance remains near $110,000.

Liquidity conditions have also weakened. Market-maker Wintermute reports that key liquidity sources, including stablecoins, ETFs, and digital asset treasuries, have reached a plateau.

The slowdown could increase volatility as traders unwind leveraged positions. Ethereum fell by over 3.5% to $3,432, while major altcoins like Solana, Cardano, and Hyperliquid recorded losses exceeding 8%, dragging the total crypto market capitalization down 0.6% to $3.52 trillion.

Despite the recent pullback, Morgan Stanley remains optimistic about Bitcoin’s long-term role as a macro hedge. Michael Cyprys, head of U.S. brokers and asset managers research at the firm, noted that “institutional investors increasingly view Bitcoin as digital gold and a hedge against inflation.”

Spot Bitcoin ETFs now hold over $137 billion in assets, while Ethereum ETFs account for $22.4 billion, according to SoSoValue data.

Meanwhile, companies like London BTC Company Limited are expanding operations in North America, leveraging renewable energy to sustain mining profitability. Analysts say such developments underscore the maturing structure of the crypto market, even as short-term sentiment cools.

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For now, Morgan Stanley’s message is clear, Bitcoin’s “fall season” has begun, making this an opportune moment for investors to secure profits before potential volatility returns.

Cover image from ChatGPT, BTCUSD chart from Tradingview