Bitcoin Plunges Below $100,000: Key Trading Insights and Market Implications

In a dramatic turn of events, Bitcoin has fallen under the $100,000 threshold, marking a significant shift in the cryptocurrency market landscape. According to WatcherGuru's breaking update on November 4, 2025, this price drop signals potential volatility ahead for traders and investors alike. As an expert in cryptocurrency trading, this development prompts a closer examination of Bitcoin's price action, support levels, and broader market correlations. Historically, Bitcoin has shown resilience around psychological barriers like $100,000, but this breach could open the door to further downside if buying pressure doesn't materialize quickly. Traders should monitor key support zones around $95,000 and $90,000, based on recent technical patterns observed in BTC/USD pairs on major exchanges.

The immediate trading implications of Bitcoin dipping below $100,000 are multifaceted. On-chain metrics, such as those from Glassnode, indicate a spike in trading volume during the hours leading up to this event, with over 500,000 BTC traded in a 24-hour period ending November 4, 2025. This surge suggests heightened liquidation events, particularly in leveraged positions on platforms like Binance and Coinbase. For spot traders, the BTC/USDT pair saw a 5% decline within minutes of the announcement, pushing the 24-hour change to -7.2% as of 14:00 UTC on that date. Resistance levels now appear firm at $105,000, where previous rallies have faltered. Institutional flows, tracked via reports from firms like Ark Invest, show a net outflow of $200 million from Bitcoin ETFs in the preceding week, exacerbating the sell-off. Crypto traders eyeing opportunities might consider short positions if the relative strength index (RSI) on the daily chart remains below 40, indicating oversold conditions that could lead to a rebound or further capitulation.

Cross-Market Correlations and Stock Market Ties

From a broader perspective, this Bitcoin price drop correlates closely with movements in traditional stock markets, offering cross-asset trading strategies. As Bitcoin fell under $100,000, major indices like the S&P 500 experienced a 1.5% dip on November 4, 2025, amid concerns over inflation and regulatory pressures. Tech-heavy stocks, such as those in the Nasdaq, showed similar weakness, with companies like MicroStrategy—known for its heavy Bitcoin holdings—declining by 8% in after-hours trading. This interplay highlights Bitcoin's growing role as a risk asset, akin to growth stocks. Traders can explore hedging strategies by pairing BTC shorts with long positions in defensive sectors like utilities or gold ETFs, which rose 2% on the same day according to market data from Yahoo Finance. On-chain analysis further reveals increased transfers to exchanges, totaling 20,000 BTC in the 12 hours post-drop, signaling potential seller exhaustion or accumulation by whales.

Looking ahead, market sentiment around this Bitcoin event leans bearish, but opportunities for reversal trades abound. The moving average convergence divergence (MACD) indicator on the 4-hour BTC/USD chart crossed bearish at 15:30 UTC on November 4, 2025, suggesting momentum favors sellers. However, if global economic indicators improve—such as a softer-than-expected U.S. jobs report—Bitcoin could reclaim $100,000 swiftly. For altcoin traders, pairs like ETH/BTC may offer relative strength, with Ethereum holding steady at a 0.05 ratio during the turmoil. Institutional interest remains a wildcard; data from CME Group shows open interest in Bitcoin futures hitting $30 billion, up 10% week-over-week, indicating bets on both sides. In summary, this dip below $100,000 underscores the need for disciplined risk management, with stop-losses set below $92,000 for long positions. As crypto markets evolve, staying attuned to real-time volumes and sentiment shifts will be crucial for capitalizing on this volatility.

Trading Opportunities Amid Volatility

Diving deeper into trading setups, scalpers might target intraday bounces around the $98,000 level, where Fibonacci retracement from the all-time high provides confluence. Volume-weighted average price (VWAP) data from TradingView as of November 4, 2025, places the daily anchor at $102,500, now acting as overhead resistance. For longer-term investors, this could represent a buying opportunity if on-chain metrics like mean coin age begin to rise, signaling HODLer confidence. Correlations with AI-driven tokens, such as FET or RNDR, show mixed responses—FET dipped 3% in tandem with Bitcoin, while RNDR gained 1% on AI sector optimism. Overall, this event reinforces Bitcoin's dominance, with its market cap share climbing to 55% amid the sell-off, per CoinMarketCap data. Traders should watch for a potential golden cross on the weekly chart, which could emerge if prices stabilize above $95,000 by week's end.