$2 Trillion Market Cap No More: What Drives The Bitcoin Drop

Bitcoin (CRYPTO: BTC) has slipped under the $100,000 mark amid heavy ETF outflows and renewed doubts about Federal Reserve rate cuts, signaling growing institutional caution.

What Happened: Bitcoin’s rejection at key daily moving averages and the $106,800 level triggered a deeper correction toward the $95,700 (.703 Fib) zone, with a possible extension into the $91,000?$88,000 golden pocket, near the 3D 200 SMA/EMA.

Over the past day, Bitcoin flushed all long liquidity between $101,000 and $96,000, hitting the expected $95,700 target.

The drop reflects strong bearish momentum, weak money flow, and widespread leverage wipeouts.

Now, price has entered a more constructive but highly volatile zone, where BTC's reaction around major support will determine whether the broader uptrend can recover.

A bottoming structure near these levels could reignite bullish momentum.

But if Bitcoin fails to hold support, any bounce risks forming a macro lower high before deeper downside.

Also Read: Bitcoin Crashes Below $96,000 As $1 Billion Wiped Out In Liquidations Across ETH, XRP, Dogecoin

Why It Matters: Santiment data shows Bitcoin has dipped below $100,000 for the second time this month, sparking classic retail fear. Sentiment indicators currently highlight:

• Strong bullish/greedy bias – often precedes cooling or downside
• Neutral/mixed bias ? markets follow whales or macro catalysts
• Strong bearish/fearful bias ? common near panic lows and improved risk/reward zones

Bitcoin has now moved into this fear-driven "green zone", a region where retail panic historically peaks and local bottoms often form.

Sentiment remains a powerful driver, and BTC price frequently moves opposite the crowd's dominant narrative, meaning extreme fear often aligns with rebound potential.

Read Next:

• Eric Trump Defends Bitcoin: No Asset Matches Its History, ‘Every Cycle Has Drawdowns’

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