Analysts: Bitcoin is at a "critical inflection point," with bottoming signs coexisting with early downside signals.

On November 5th, according to The Block, Bitcoin's November start continued Tuesday's downward trend, following what K33 called a "terrible October." According to a newly released report from K33, Bitcoin fell 10% over the past week, retesting the $100,000 mark—its lowest point since June and its weakest 30-day performance against the Nasdaq since July 2024, noted Vetle Lunde, Head of Research, in the report. Lundde attributed the decline to limited liquidity and fear-driven market sentiment, particularly following the historic deleveraging event of October 11th—which saw at least $20 billion in the largest liquidation of crypto assets ever. He stated, "Fear-driven market sentiment, coupled with massive selling by long-term holders, further exacerbated the market weakness as buyers adopted a wait-and-see approach, perceiving increased risk." Lunde also pointed out that Bitcoin is now at a "critical inflection point," approximately 25 days after the aforementioned event. The market faces further downward pressure following the latest FOMC meeting—despite the Fed's announcement of a 25 basis point rate cut, policy uncertainty (related to the US government shutdown) outweighed the positive factors. Furthermore, K33's derivatives market indicators suggest that the current market structure exhibits a mix of bottoming and early-stage downward characteristics.