BTC crash alert: Why Bitcoin price dropped to $107,000 and why experts warn it could fall to $88,000
Bitcoin Price Drops to $107,000 as Market Sentiment Turns Negative
The world’s largest cryptocurrency has dropped to around $107,000, sparking concern among traders and investors as market sentiment turns sharply negative.According to analysts, the Bitcoin price crash could worsen if sentiment doesn’t improve soon, with some warning that prices could fall as low as $88,000 in the coming days, as per a TradingView report.
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Federal Reserve’s Cautious Tone Sparks Bitcoin Sell-Off
The main trigger behind Bitcoin’s recent slide is the Federal Reserve’s cautious stance following its latest interest rate decision, as per the report. While the Fed reduced rates last week and signaled plans to end quantitative tightening by December, Fed Chair Jerome Powell emphasized that another cut in December was not guaranteed, as per the TradingView report.
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That statement quickly dampened optimism across financial markets. Data from the CME FedWatch Tool shows that the odds of another rate cut in December dropped from 90% to 63%, while chances for January fell to just 19.5%. The shift in expectations led to widespread selling across risk assets, including cryptocurrencies and especially Bitcoin.
Adding to the unease, the Crypto Fear and Greed Index remains in the “fear” zone at 35, reflecting persistent caution among traders, as per the TradingView report. Institutional investors also appear to be pulling back, with nearly $800 million withdrawn from Bitcoin and Ethereum ETFs last week, as per the report.
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Long-Term Holders Sell Off Bitcoin Amid Weak Market Trends
Bitcoin’s decline has been intensified by long-term investors taking profits. Data from Coinglass shows that holders sold more than 100,000 BTC in October, adding to downward momentum.October, typically known as “Uptober” for its strong crypto performance, broke its seven-year bullish streak this year. Bitcoin slipped 3.7% for the month, marking a rare setback for the cryptocurrency, as per the TradingView report.
Global economic tensions are also weighing on sentiment. Ongoing trade disputes between the US and China, along with uncertainty surrounding oil prices and geopolitical risks, have driven many investors toward safer assets such as the dollar and gold, as per the report.
Key Bitcoin Price Levels to Watch Now: $113,000 and $88,000
According to Coinglass, Bitcoin risks falling to $88,000 if it fails to hold above the $113,000 resistance level, which represents the cost basis for short-term holders. A sustained break below this level often triggers capitulation, where investors sell at a loss, deepening the decline.The $88,000 mark also aligns with Bitcoin’s realized price, the average cost basis of active investors, which has historically served as a strong support during past corrections. However, analysts say that if Bitcoin can close and hold above $113,000, it could invalidate the bearish outlook and open the door for a short-term rebound, as per the TradingView report.
BTC Price Outlook for November 2025
With few major catalysts ahead in November, Bitcoin could continue trading sideways between $107,500 and $123,000, as per the TradingView report. Market uncertainty over US economic data and a potential government shutdown may keep volatility elevated.Still, some analysts believe a “Santa Rally” could emerge in December if the Fed follows through with its plans to end quantitative tightening and possibly cut rates again, reported TradingView. That could bring back some liquidity and optimism to the crypto market in the final stretch of 2025.
For now, traders are watching the $113,000 resistance and $100,000 support levels closely, as a clear breakout or breakdown from this range will likely determine Bitcoin’s next major move, as per the report.
Negative Coinbase Premium Signals Weak US Sentiment
Adding to the bearish tone, Bitcoin’s price premium on Coinbase, a key indicator of US retail sentiment, turned negative in late October and early November, as per a Investing.com report. The cryptocurrency traded at a discount on Coinbase for four consecutive days, the longest streak since mid-August, according to Coinglass data.A negative premium suggests reduced US buying interest, increased selling pressure, and greater risk aversion among retail investors. The trend also coincided with capital outflows from US-listed Bitcoin ETFs and a 5% price loss in October, ending Bitcoin’s long-standing “Uptober” rally, as per the report.
FAQs
Why is Bitcoin crashing today?Bitcoin is falling mainly due to the Federal Reserve’s cautious comments and reduced expectations for more rate cuts, as per the TradingView report.
Could Bitcoin recover soon?
A strong close above $113,000 could trigger a short-term rebound.
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