The Bitcoin price has fallen below $116.000, triggering warning signs in the markets. Traders and institutions are retreating, while put options point to a possible correction towards $80.000.
Bitcoin has broken through a crucial technical level at $116.000, sparking concern among traders and investors. This drop not only represents a price pullback, but also reflects a change in tone in the market, where the euphoria of July is beginning to give way to a increasing downward pressure.
Put options are skyrocketing, ETFs are seeing multi-million dollar outflows, and institutional sentiment is weakening, creating a scenario that could take the cryptocurrency below $100.000 before the end of the year, according to some experts.
BUY BITCOIN FAST AND SAFEInstitutional fund outflows and signs of weakness dominate the market
Bitcoin's breakout from support at $116.000 has coincided with a significant withdrawal of institutional capital. Bitcoin-linked exchange-traded funds (ETFs) have seen four consecutive days of net outflows, accumulating more than a billion dollars, as shown by the data This outflow of institutional funds suggests that large market players are reducing exposure, which is weakening the support that propelled Bitcoin to its peak. all-time high of $123.091 in July.
Source: Soso Value
The weakening of institutional interest in Bitcoin not only affects liquidity but also overall confidence. Without this support, the BTC price faces more intense selling pressure. Recent decisions by the Federal Reserve, coupled with signs of an economic slowdown, have intensified aversion to risky assets, directly impacting Bitcoin and cryptocurrencies.
Defensive market strategies in the face of a possible deep Bitcoin crash
Derivatives markets are showing clear signs of caution regarding the possibility of Bitcoin facing a deeper decline. There has been a significant increase in demand for put options, known as puts, with strike prices located near important psychological levels, such as $95.000, $80.000, and just above $100.000. This pattern reflects that many traders are seeking to protect themselves against a potential pullback, and that the symbolic $100.000 barrier is considered vulnerable.
The recent drop in the price of the leading cryptocurrency led to long liquidations for a considerable amount, close to $172 million dollars, according to data from CoinGlass. This supports the perception that the market is going through a broader corrective phase.
On a technical level, the relative strength index (RSI) shows bearish divergences on weekly and monthly timeframes, a signal that has historically predicted significant price declines. For example, analyst Michaël van de Poppe notes that if Bitcoin fails to reclaim the $116.000 zone soon, it could experience a deeper decline. He even suggests that testing resistance near $115.000 is often indicative that the market is entering a consolidation phase. In this context, Altcoins could take advantage to regain momentum and rise again.However, if the BTC price loses the $113.000 support, the outlook would turn more negative and the risk of new lows would increase, indicating that the correction could continue to even lower levels.
In short, the market is in a state of expectation, with a clear increase in protection against possible downsides, while the $100.000 threshold appears to be a key area for defining Bitcoin's short-term direction. The combination of technical factors and derivatives activity creates a cautious outlook, paving the way for significant moves if these psychological supports are broken.
BUY BITCOIN ON BIT2METhe crypto market faces economic and political winds
Glassnode analysts note that market sentiment has changed dramatically. The euphoria post-ATH, that is, what was once euphoria after reaching all-time highs is now perceived as caution and a preference for protecting capital. This shift is largely due to tighter monetary policy in the United States and the persistent threat of inflation, factors that generally make risky assets like Bitcoin less attractive.
Furthermore, the political context adds uncertainty. Expectations about President Donald Trump's policies have generated speculation, but also fear. This context shows a market hovering between hope and caution, seeking clear signals to decide whether it's time to hold firm or protect profits. Bitcoin's volatility not only reflects global economic factors but also sensitivity to political movements and external influences that can shake market confidence.
What to expect in the coming months?
Although the current outlook is challenging, Bitcoin has demonstrated resilience in previous cycles. Its decentralized nature and growing adoption as a store of value could offer recovery opportunities if the macroeconomic environment improves.
However, in the short term, caution appears to be the best strategy. Technical indicators, derivatives performance, and institutional withdrawals suggest that the cryptocurrency's price could continue to decline. If the $100.000 level is broken significantly, the next downside target lies around $80.000, an area already being considered by professional traders.
For those closely following Bitcoin's price developments, it will be crucial to monitor capital flows, derivatives market activity, and monetary policy decisions. These factors will determine whether the market-leading cryptocurrency stabilizes or, on the contrary, enters a deeper correction phase.
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