Bitcoin crossed the $100,000 mark earlier this year and created excitement around the world. Long-term holders celebrated record gains, and retail traders entered the market with high expectations. However, the crypto market never follows a straight path. On November 5, 2025, Bitcoin slipped below $104,000 as investors began aggressively booking profits. This sudden decline triggered mixed emotions—fear for some, opportunity for others.
Profit Booking Begins After a Strong Rally
Bitcoin rallied strongly over the past few months. Many investors saw returns of 30–40% and decided to lock in their gains. Large institutional investors led this wave of profit booking. Hedge funds and crypto whales sold significant portions of their holdings. This selling pressure pushed Bitcoin’s price downward. Retail traders followed the trend and contributed further to the decline.
Traders did not panic initially. They saw the rise past $100,000 as a psychological barrier and expected small corrections. But the speed of the sell-off surprised them. The market saw high trading volumes. Exchanges like Binance, Coinbase, and Kraken recorded sharp spikes in sell orders.
Market Sentiment Shifts Suddenly
Positive sentiment dominated the crypto world throughout October. Analysts predicted a move toward $120,000. Bitcoin ETFs attracted new investments, and governments discussed favourable regulations. When investors saw no immediate major price surge after $105,000, they shifted their strategy. Instead of waiting for another rally, they sold their assets to secure profits.
Fear of missing out transformed into fear of losing gains. Many traders said, “Better safe than sorry.” This mindset changed the tone of the market overnight. Social media platforms filled with predictions of deeper corrections. Analysts debated new support levels. Some pointed to $102,000 as a key level, while others warned of a potential drop to $98,000.
Why Did Bitcoin Fall So Quickly?
Several clear factors drove the fall:
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Profit-taking by institutional investors: Institutions bought at lower levels during earlier corrections. They now chose to sell at attractive prices.
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Over-leveraged positions: Many traders used high leverage. When the price dropped slightly, exchanges auto-liquidated their positions. This created a chain reaction and forced more selling.
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Global market uncertainty: Stock markets in the U.S. and Europe showed signs of weakness. Investors moved to safer assets like bonds and cash.
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Strengthening U.S. dollar: A stronger dollar usually weakens Bitcoin because it becomes more expensive in other currencies.
Each factor played a role. Together, they intensified the selling momentum.
Can Bitcoin Recover in the Short Term?
Analysts remain divided. Bullish experts believe Bitcoin still sits in an overall uptrend. They argue that strong demand will return near $100,000. Many long-term holders still refuse to sell. They see Bitcoin as digital gold and trust its future potential. They also point to rising adoption by major banks, payment companies, and governments.
On the other side, cautious traders fear further decline. They think Bitcoin needs time to consolidate. They expect a retest of lower support zones—possibly around $95,000 or even $90,000. They advise traders to stay patient and avoid heavy leverage for now.
Historical Patterns Give Context
Bitcoin often corrects after reaching new highs. During the 2021 and 2024 rallies, the market saw several pullbacks of 15–20%. Those corrections did not end the bull cycles. Instead, they created stronger foundations for future growth.
This current drop below $104,000 looks similar. Long-term data shows that every major rally includes profit-taking phases. Traders call these phases “healthy corrections.” They wash out weak hands and reduce leveraged positions. After that, strong hands step in and drive the next leg upward.
Altcoins Also React to Bitcoin’s Drop
Altcoins immediately followed Bitcoin’s downward move. Ethereum slid below $5,300. Solana and XRP saw single-digit declines. Meme coins like Dogecoin and Shiba Inu dropped faster because of their speculative nature. Investors typically sell altcoins first during corrections because they see them as riskier.
However, some altcoins held strong. Projects with real utility and strong fundamentals attracted buyers at lower prices. Investors shifted their focus from hype-driven tokens to value-driven blockchain projects.
Investor Strategies During the Dip
Experienced investors used the dip as a buying opportunity. They placed limit orders near $100,000 and waited calmly. They focused on long-term gains rather than daily volatility. Some traders applied the “buy-the-dip” strategy and accumulated small portions regularly.
New traders felt confused. Some sold out of fear. Others held their assets and waited for clearer market direction. Financial advisors suggested simple rules: avoid panic, do not use heavy leverage, and stick to long-term goals.
What Happens Next?
Several factors will influence Bitcoin’s next move:
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U.S. Federal Reserve policies: If the Fed cuts interest rates further, risk assets like Bitcoin could rise.
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ETF inflows: Spot Bitcoin ETFs continue to attract institutional interest. If inflows stay strong, demand could push prices back up.
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Regulation: Governments around the world keep shaping crypto regulations. Supportive policies could boost investor confidence.
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Halving effect: Analysts still discuss the impact of the 2024 Bitcoin halving. Reduced supply often leads to higher prices after several months.
If positive factors align, Bitcoin could recover above $104,000 quickly. If negative pressures continue, the market may dip more before climbing again.
Conclusion
Bitcoin’s fall below $104,000 does not signal the end of the bull run. It reflects typical market behaviour after a strong rally. Investors locked in profits, leveraged positions liquidated, and global uncertainty added pressure. The correction created short-term fear but also opened long-term opportunities.
Smart investors now watch key price levels closely. They understand that volatility defines Bitcoin. They focus on trends rather than single-day moves. Whether Bitcoin bounces back or drops further, one fact remains clear: the world still watches this digital asset with intense interest.
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