Bitcoin Price Tumbles Toward $98,000: What’s Driving The Drop And What Lies Ahead

Overview

Bitcoin’s price has recently fallen toward the $98,000 mark, continuing a trend of lower lows that has characterized the cryptocurrency’s performance over the past month. This decline has heightened market uncertainty and raised concerns about potential future drops.

Current Market Situation

On Thursday, Bitcoin approached the significant threshold of $98,000, reflecting a performance in November that appears to replicate the downturn seen in October. This trend is indicative of a broader downtrend in the market, with Bitcoin confirming lower lows over the past month.

Government Shutdown Impact

The recent downturn coincides with President Donald Trump’s signing of a bill that ended the longest government shutdown in U.S. history. This government instability may contribute to the growing uncertainty within the cryptocurrency market.

Technical Analysis

Market analyst Ali Martinez has suggested that Bitcoin may be forming a head-and-shoulders pattern, a technical formation that could signal a significant price drop. If this pattern holds true, it could lead to a decline to as low as $83,000, representing a potential 15% drop from current levels.

Additionally, Bitcoin has recently fallen below its 200-day simple moving average (SMA), a critical technical support level during bullish cycles. Analysts note that a break below this level during bear markets often leads to substantial declines, raising concerns about Bitcoin potentially dropping below its realized price, which is currently pegged at $56,200. This scenario implies that Bitcoin could experience a further 42% decline from current trading prices.

Bear Market Concerns

Despite expectations for bullish catalysts, such as increased liquidity, possible interest rate cuts by the Federal Reserve, and positive macroeconomic data, the outlook for Bitcoin suggests the potential for a new bear market. Ali Martinez’s analysis indicates that bearish sentiment is gaining momentum, raising worries about an impending “crypto winter” for investors.

As of the latest updates, Bitcoin is trading at approximately $98,150, marking a loss of nearly 13% over the past thirty days. This decline has erased much of the gains Bitcoin had accumulated throughout the year, with a mere 9% gain recorded in the same timeframe.

Impact on the crypto market

• Bitcoin’s recent decline reflects a broader downtrend, increasing market uncertainty.
• The potential formation of a head-and-shoulders pattern raises concerns about a significant price drop.
• Falling below the 200-day SMA suggests a lack of support, which may lead to further declines.
• The possibility of a new bear market looms, despite some expected bullish catalysts.
• The market has seen a notable loss over the past month, impacting investor sentiment significantly.

Updated: 11/13/2025, 10:23:02 PM