Bitcoin faces Further Downside Risk, Eyes $88,000 and $72,000 Support Levels
Bitcoin is under notable pressure following a breach of the $99,000 level, entering what analysis firm CryptoQuant describes as an “extremely bearish” phase triggered by a major liquidation event on october 10th. The downturn is compounded by contracting spot demand-beginning October 8th-and slowing growth in stablecoin liquidity, previously a driver of the bullish cycle.
Long-term holders (LTH) have been actively selling, liquidating approximately 815,000 BTC in the last 30 days, marking “one of the biggest sale episodes so far this year.” Unlike previous cycles were demand absorbed such volume, current weakness in both institutional and retail demand is amplifying the correction. Bitcoin ETFs are experiencing net outflows, and activity indicators suggest a contraction in overall demand.
On November 7th alone, $3 billion in realized profits were recorded, continuing a trend observed throughout october. Notably, losses remain minimal, indicating a lack of market capitulation – a typical prerequisite for establishing a definitive price floor.
Analyst Jaime Merino notes the break of $99,000 “weakens the short-term technical structure,” while acknowledging corrections of 20-30% are common within larger bullish trends. He emphasizes a sustained recovery in demand is needed too regain upward momentum and target the $112,000-125,000 range.
Should the downtrend persist, analysts identify $88,000 and $72,000 as the next key support levels. The market currently awaits a catalyst to reverse the ongoing deterioration.
