Bitcoin Falls Below $98K: What the Technical Breakdown Is Telling Us

The recent slide in Bitcoin below $98,000 wasn’t a random event—it was a textbook execution of the warning signals that emerged weeks earlier. What makes this pullback significant isn’t just the price movement itself, but what it reveals about the broader market structure and where participants should be watching next.

The Breakdown Was Telegraphed

Bitcoin’s decisive break below $112,000 marked a critical inflection point. Since that level gave way, the asset has shed another 11%, reinforcing what data-driven analysts had been flagging across multiple reports. This wasn’t speculation; it was a documented shift in the technical setup.

Ethereum’s performance tells a complementary story. Down roughly 17% from late October, the world’s largest smart-contract platform is now trading at levels where on-chain transaction activity appears disconnected from price. Yet this valuation backdrop doesn’t automatically signal a reversal—not while the macro downtrend remains in place.

Trend Models and Market Mechanics

Since mid-October, both Bitcoin and Ethereum trend models have maintained a bearish configuration, and that signal hasn’t flipped. The critical point here is that trend-following systems thrive during extended, volatile cycles, especially when two conditions align: positioning stress and macro catalysts. The past several weeks have delivered both.

This is why quick rebounds—like the ones we’ve seen recently—tend to fade rather than persist. Short-term bounces in a confirmed downtrend are precisely when participation should remain cautious. The $98,000–$100,000 zone represents where sellers can re-engage and accelerate the selloff.

The Current Picture

At $88.92K (as of latest data), Bitcoin is already trading well into that anticipated zone. Ethereum at $2.97K shows similar pressure, with minimal conviction behind any relief rallies. The key difference between calling corrections and identifying rallies is that avoiding drawdowns is what drives long-term outperformance.

What Traders Should Watch

The next inflection will depend on whether crypto can stabilize above certain levels or whether macro headwinds intensify further. For now, the technical positioning and flow data suggest caution remains warranted. The next few trading sessions will likely determine whether this consolidation zone holds or cracks further.