Analyst: Bitcoin is at a "Key Turning Point," with Bottom Signs and Early Downside Signals Coexisting

BlockBeats News, November 5th. According to The Block, Bitcoin's November started in continuation of Tuesday's downward trend, which had already been impacted during what K33 referred to as the "dreadful October." According to a new report released by K33, Bitcoin has dropped 10% in the past week, once again testing the $100,000 mark — the lowest point since June this year and the weakest 30-day performance against the Nasdaq index since July 2024, as stated by Research Director Vetle Lunde in the report.

Lunde attributed this decline to restricted liquidity and fear-driven market sentiment, especially following the historic deleveraging event on October 11th — when the largest ever liquidation of at least $20 billion in crypto assets occurred. He stated, "Fear-driven market sentiment, coupled with significant sell-offs from long-term holders, further weakened the market as buyers remained cautious amidst perceived heightened risks."

Lunde also pointed out that Bitcoin is now at a "critical turning point," approximately 25 days from the aforementioned event. The market faced further downward pressure post the latest FOMC meeting — despite the Fed announcing a 25-basis-point rate cut, policy uncertainty (related to the US government shutdown) overshadowed the positive factors. Additionally, K33's derivatives market indicators show that the current market structure exhibits a mix of bottoming features and early downtrend characteristics.