What happened?
Bitcoin recently dipped below the $100,000 band and under its 365-day moving average after failing to hold key support levels. On-chain metrics and CryptoQuant readings show weakening fundamentals — the Bull Score hit zero and roughly one-third of all Bitcoin is now held at a loss. At the same time, rising correlation with the NASDAQ and miners reallocating resources toward AI compute have added extra downward pressure.
Who does this affect?
Short-term traders and recent entrants are most exposed to fast price swings and mounting realized losses. Long-term holders and miners could feel forced to de-risk if selling pressure grows, which would amplify market stress. Broader crypto investors and equity players tied to tech markets also face spillover risk because Bitcoin’s correlation with the NASDAQ has surged.
Why does this matter?
If Bitcoin fails to reclaim the $100K band, models point to a potential slide toward ~$72K, which would likely sap liquidity and confidence and deepen any correction. That outcome could turn brief rallies into exit moves rather than fresh bull runs, eroding demand and market structure. Conversely, if capitulation ends and liquidity returns — possibly aided by Fed rate cuts — this region could become a major accumulation zone and set up the next leg higher.