Bitcoin drops 14.5% from all-time high as 'Red October' pressure extends into November

Bitcoin's (BTC) November opened on a shaky note as the world's largest cryptocurrency extended its losing streak, falling below $108,000 on profit booking by whales and continued ETF outflows. The downfall in BTC's price follows October 19's $19 billion sell-off, and subsequent downturn seen in 'Red October', which continues to put pressure on volatile digital assets. While short-term traders react to macro signals such as the Federal Reserve’s policy stance, market stakeholders view the current decline as a consolidation phase, which could well be building momentum for the next round of rally.

Latest data shows BTC is trading 2.65% down on a 24-hour basis at $107,756.57 with an m-cap of $2.1 trillion, dropping 14.54% from its all-time high of $126,080 hit on October 15 this year. After October 19's $19 billion sell-off, BTC had plunged nearly 20% to $102,000. Other major cryptocurrencies are also trading with similar falls -- Ethereum is down 4.28%; XRP is trading 5.32% lower; Solana and Dogecoin are also down 5.35% and 6.31%, respectively.

With this, the crypto market has slipped further by 3.31% to $3.6 trillion. According to the Coinglass data, in the past 24 hours, 1,90,969 traders liquidated, amounting to the total $541.11 million worth liquidations in a single day. The largest single liquidation order happened on Hyperliquid - ETH-USD value $8.93 million, it said.

Here's what India's crypto industry has to say about Bitcoin's continued slide and the broader market downturn:

1) The recent pullback in Bitcoin’s price highlights the maturing yet still sentiment-driven nature of the current crypto rally, says Avinash Shekhar, Co-Founder & CEO, Pi42. "We view this phase as a healthy consolidation rather than a loss of momentum. Bitcoin’s dominance above 58 per cent and a market capitalisation exceeding $2.2 trillion continue to reflect strong institutional confidence. If the price sustains above $111,000 with conviction, it could pave the way for a renewed push toward record highs. However, a prolonged dip below $106,000 may warrant near-term caution,” says Shekhar.

2) Experts also think that Bitcoin, trading range-bound between $109,500 and $111,000, is building momentum for the next leg of the rally as the crypto market enters a bullish mode with the US-China finalising a trade deal. "The Fed’s $29.4 billion injection and record liquidity boost from China’s PBOC are a turning point for global risk assets. Historically, such synchronised easing has led to major Bitcoin rallies, including the 2020-21 bull run during post-COVID monetary easing. For BTC, $111,200 remains the immediate resistance point with support at $107,600," says Edul Patel, CEO and Co-founder, Mudrex.

3) Industry stakeholders believe that BTC faces strong resistance between $110,700–$111,500, with support at $106,000–$104,000. "A sustained move above $111,500 could trigger a bullish reversal, while a drop below $108,000 may invite deeper correction," says Riya Sehgal, Research Analyst, Delta Exchange. Mirroring Bitcoin’s weakness, Ethereum trades around $3,760, rejecting from $3,880–$3,950 resistance. As per Sehgal, the key support lies near $3,700–$3,650. "Despite October’s 13% fall, ETH treasuries recorded inflows of 550K ETH, signalling long-term confidence. Overall, markets are experiencing a healthy deleveraging phase. While long-term holders have begun light profit-taking, Bitcoin’s realised cap above $1.1 trillion and stable on-chain activity indicate enduring structural strength ahead of a historically bullish November,” she said.

4) Over the past week, BTC's realised cap rose $8 billion to exceed $1.1 trillion, while the realised price crossed $110,000, reflecting strong on-chain inflows, says Harish Vatnani, Head of Trade, ZebPay. Vatnani adds that, however, sentiment stayed in the “fear” territory despite the announcement on the US-China deal. "The market remains cautious following October’s $19 billion sell-off, but renewed ETF inflows and expectations of Federal Reserve easing could drive Bitcoin toward the $140,000 level in November," he said. He says BTC has been trading sideways in a broad range between $116,000 and $107,000 over the past three weeks. "Breakouts on either side of the range with good volume will further determine the trend for the asset."