What happened?
Bitcoin recently slipped below its key 365‑day moving average and fell under $100,000 after months of holding above that threshold. On‑chain indicators and CryptoQuant’s Bull Score turned extremely bearish, hitting zero for the first time since mid‑2022. This breaks a major technical support that in the past signaled the start of a prolonged downturn and raises the risk of further declines toward lower support bands.
Who does this affect?
Short‑term traders and momentum funds are most exposed because they rely on the 365‑day MA for risk signals and can trigger algorithmic selling. Longer‑term holders and institutions that benchmark valuation to network metrics or realized price bands could see mark‑to‑market losses and may hesitate to add new exposure. Retail investors and anyone leveraged or using derivatives face the highest risk of forced liquidations if prices drift toward the $72K support.
Why does this matter?
A break below these key technical and on‑chain supports can flip market sentiment to deeply bearish, increasing volatility and reducing liquidity as buyers step back. If momentum traders and algos accelerate selling, we could see a sharp pullback toward the $72K traders’ band or a retest of the $91K Metcalfe valuation, which would shave a large chunk off recent gains. That kind of correction would likely slow inflows into crypto products, pressure correlated assets and force portfolio reallocations across institutional investors.