Bitcoin price: Deep decrease
Early this morning (November 5), Bitcoin - the world's largest cryptocurrency by market value witnessed a sharp decline of 3.74%, reaching 103,492.93 USD.
This new price contributes to bringing market capitalization to 2,064 billion USD, down 96 billion USD. However, trading volume in the 24 hours increased to 83.87 billion USD, up 37.02 billion USD.
Assessment and forecast
A cryptocurrency hedge fund manager pointed out worrying indicators that could signal an upcoming difficult period for Bitcoin in November and beyond.
Charles Edwards - Founder of Capriole Investments posted on X (formerly Twitter) commented: "net buying cash flow from institutional investors has decreased below the daily mining level of Bitcoin. This is the first time in 7 months".
Bitcoin prices fell 2.5% on the day, as the market continued to struggle, short price increases were quickly sold off. Total cryptocurrency market capitalization lost 3.9% in 24 hours, down to 3.5 trillion USD.
According to Edwards, when the number of bit bitcos exploited each day exceeds the institutional cash flow, it shows a warning sign that the market is weakening. The Bitcoin could face serious structural pressure in the long term.
This also shows that the market is running out of new cash flow, businesses may lack liquidity to continue buying risky assets such as Bitcoin.
Looking back at the history of November, this is usually Bitcoin's best month, with an average increase of 42.5%.
Donald Trump's re-election victory in November 2024 triggered a rally of more than 60%, pushing Bitcoin to $108,000.
However, if Bitcoin attracts new cash flow from individual or institutional investors, a new rally could reach $120,000 or a new historical peak could be completely possible.
In the event that Bitcoin drops below below $100,000, the bullish model will be disabled, and the $92,000 support level will become the next target.
Although market sentiment is leaning down, Bitcoin is still forming a hidden increase phase with the On-Balance volume (OBV) index showing that buying pressure is quietly accumulating.
If this is confirmed with a clear breakthrough, Bitcoin could reverse the situation, extending the price increase cycle in November.
