Analysts: Bitcoin is at a "critical turning point," with signs of a bottom existing alongside early downward signals.

On November 5, The Block reported that Bitcoin's November kickoff has continued the downward momentum from Tuesday, having already been impacted in what K33 referred to as “the terrible October.” According to a newly released report by K33, Bitcoin fell 10% over the past week, retesting the $100,000 mark—its lowest point since June of this year and the weakest 30-day performance of Bitcoin against the NASDAQ index since July 2024, as noted by research director Vetle Lunde in the report. Lunde attributed this drop to limited liquidity and fear-driven market sentiment, particularly following the historic deleveraging event on October 11—when at least $20 billion in crypto assets were liquidated, marking the largest clearing scale in history. He stated, “Fear-driven market sentiment, combined with large sell-offs from long-term holders, further exacerbates market weakness as buyers adopt a wait-and-see attitude amid heightened perceived risks.” Lunde also pointed out that Bitcoin is now at a “critical turning point,” about 25 days after the aforementioned event. The market faces further downward pressure following the latest FOMC meeting—despite the Fed announcing a 25 basis point rate cut, the uncertainty of the policy (related to the U.S. government shutdown) has overshadowed the favorable information. Moreover, K33's derivation market indicators show that the current market structure exhibits a mix of bottom characteristics and early downward traits.