Bitcoin recently dropped below $104,000, driven by profit-taking and macro pressures. According to reports, the crypto saw over a 4% drop in a session, with trading volumes spiking, a sign many investors chose to lock in gains rather than hold.
Key drivers:
- A weaker macro backdrop: slower rate cuts from the Federal Reserve and rising real yields weighed on risk assets.
- Large-scale selling / liquidations: Whale wallets and legacy holders moved large amounts of BTC onto exchanges ahead of the drop.
- Technical damage: Breaking key support levels (around $107K-$110K) increased the risk of further downside.
Can Bitcoin bounce back in the short term?
There are reasons to believe a short-term recovery is possible, but also clear risks to watch.
Possible supportive factors
- Seasonality & historical patterns: Some analysts point out that November has often been a strong month for Bitcoin after pull-backs.
- Key support zones: The $100K-$105K region is often cited as a structural support level. If that holds, a rebound could follow
- Institutional tailwinds: If ETF flows, institutional adoption, or positive regulatory signals pick up again, that could help reignite momentum.
What’s holding it back
- Macro headwinds: Higher real yields, strong dollar, delayed monetary easing = higher opportunity cost of non‐yielding assets like Bitcoin.
- Leverage + liquidation risk: A lot of traders were long; if prices fall further, forced liquidations could trigger another drop.
- Weak institutional inflows: Recent reports suggest institutions are buying less, and flows into Bitcoin-related ETFs have slowed.
