Bitcoin Drops to $108K, ETFs Lose $471M: Analyst Warns of Divergence
Bitcoin Market Update
- Bitcoin experienced a sharp correction, dropping to $108,000 before recovering to $111,000. This led to $825 million in liquidations, with $653 million from long positions.
- The cryptocurrency aims to break through the $113,000–$115,000 resistance zone for a potential rally to $120,000.
Bitcoin ETF Outflows
- On October 29, spot Bitcoin ETFs recorded net outflows of $471 million, marking one of the largest single-day outflows since their launch.
- Ethereum ETFs also saw $81.44 million in outflows, except BlackRock’s ETHA, which registered modest inflows.
Analyst Insights on Cycle Divergence
- Analyst Jason Pizzino highlights a divergence between Bitcoin's actual performance and historical bull cycle models since September.
- This divergence suggests Bitcoin's market structure may differ from traditional cycles, raising doubts about the applicability of past models.
Whale Activity and Market Caution
- On-chain data from CryptoQuant indicates a rise in the Binance Exchange Whale Ratio, suggesting increased activity by large holders moving BTC to exchanges.
- This behavior implies that whales might be selling into recent recoveries, potentially capping Bitcoin’s short-term upside.