Bitcoin Price Rally at Risk: What a Drop Below $108,000 Could Mean for the Next Market Move

Bitcoin price dropping below $108,000 has left traders questioning whether the rally is losing steam or just pausing before a comeback. The cautious tone from Fed Chair Jerome Powell and uncertainty over a December rate cut have rattled markets, sparking a wave of selling. Yet, big-money players aren’t backing down—they’re doubling down with massive long positions. With tensions high and volatility rising, all eyes are now on whether Bitcoin can hold its ground—or surprise everyone with a sharp rebound.

What Went Wrong for Bitcoin?

Bitcoin’s sharp reversal was fueled by shifting market expectations around Federal Reserve policy that announced a rate cut of 25 bps. While investors had priced in multiple rate cuts by year-end, Fed Chair Jerome Powell’s cautious tone during the recent FOMC meeting disrupted that optimism. Powell emphasized a data-dependent approach, suggesting that a December rate cut isn’t guaranteed and could be delayed if inflation remains sticky.

This statement hit risk assets hard—traders quickly unwound bullish bets, leading to capital rotation back into the U.S. dollar and Treasuries. As yields climbed, Bitcoin price and other risk-on assets faced renewed selling pressure. The hesitation around policy easing effectively erased the short-term bullish narrative, undermining the post-summer rally and signaling that liquidity conditions may remain tight longer than expected.

In essence, what was once seen as a soft landing scenario has now turned into uncertainty over how soon the Fed will pivot—a narrative shift that has dragged Bitcoin back toward a critical support zone.

Despite the Downturn, Whales Double Down on Leverage

While retail sentiment turns cautious, crypto whales are taking the opposite side of the trade—placing bold leveraged bets on a potential rebound. On-chain and derivatives data from Hyperliquid, shared by Lookonchain, reveal a growing conviction among top traders despite the recent correction.

Notably, Trader 0x9553 initiated his first position on Hyperliquid, opening a massive 40x long on 179.59 BTC (~$19.94 million), signaling confidence in a near-term bounce. Similarly, wallet 0x6988 deposited $1.95 million in USDC to open a 25x long on 4,743 ETH (~$18.71 million), while Trader 0xd260, known for an 83.72% win rate and $2.6 million+ in profit, entered another 40x long on 62 BTC (~$6.88 million).

Such aggressive positioning reflects that smart money continues to anticipate a recovery, betting that the FOMC-triggered dip may be temporary rather than a structural reversal.

Bitcoin Price Prediction for November—A Technical Perspective

From a technical standpoint, Bitcoin is approaching a critical inflection zone as it hovers near the $108,000 support. The daily RSI has slipped below 50, signaling weakening momentum, while the MACD shows a bearish crossover, hinting at sustained downside pressure if buyers fail to step in soon.

A decisive close below this zone between $107,200 and $106,600 could accelerate the drop toward $104,000, where stronger demand may reappear. However, if bulls defend this range and reclaim $110,500, Bitcoin could retest $114,000–$116,000 resistance levels by mid-November. Else, a failure may drag the levels towards the psychological barrier at $100,000. 

Volume analysis also reveals declining sell pressure on lower timeframes, suggesting that whale accumulation and leveraged long positions might soon stabilize the market. Overall, November could start with continued consolidation but may end with a potential recovery rally, provided macro conditions improve and FOMC anxiety subsides.

Wrapping it Up!

As November unfolds, Bitcoin stands at a make-or-break point. A deeper fall could shake short-term confidence, but a strong rebound might reignite the bull run faster than expected. Whales are betting on a turnaround, hinting that this pullback could be a setup rather than a setback. With rate-cut hopes still alive and sentiment shifting daily, the next major move may catch the market off guard—raising the question: is Bitcoin’s next big breakout closer than it seems?