Bitcoin is deep in correction mode again, and the selloff is intensifying rather than stabilizing. The world’s biggest cryptocurrency slipped to roughly $95,000 this week as traders across both crypto and equities rapidly shifted into risk-off positioning.
With sentiment deteriorating and outflows building across institutional products, Bitcoin is now on pace to book its third straight week in the red — its longest losing streak since early autumn.
A painful reversal from October’s euphoria
Optimism from Bitcoin’s record-setting surge in October has now flipped into defensive trading. After touching an all-time high near $126,330 just a few weeks ago, BTC has erased tens of thousands of dollars in value. On the weekly chart, three consecutive steep red candles have now appeared — a formation traders call “three black crows,” usually associated with strong bearish momentum.
Technical analysts warn that the current structure leaves room for deeper losses. Bitcoin’s recent breakdown has confirmed a rising-wedge reversal, a setup that historically resolves with rapid downside when support collapses. Calculations based on the wedge’s breadth point to a possible profit-target zone near $62,600 — roughly a 35% drop from current levels.
Momentum indicators also paint a concerning picture: both the RSI and MACD peaked before price did, signaling a bearish divergence weeks before the correction began.
Macro expectations are tightening again
The shift hasn’t been driven solely by technicals. Traders have walked back their expectations for Federal Reserve rate cuts — a major blow to risk assets. Polymarket data shows the probability of a cut at the December meeting sliding from 90% in late October to around 54% now, reflecting persistent inflation worries and hawkish Fed commentary.
The market fallout is visible across crypto derivatives and ETFs as well. Bitcoin futures open interest has collapsed from nearly $100 billion to about $60 billion, revealing a sharp exodus of leverage from the system following the massive liquidation episode earlier this month. Meanwhile, spot Bitcoin ETFs continue to bleed capital, signaling that institutional appetite has cooled dramatically.
Whales step back as fear takes over
On-chain flows reinforce the narrative: large wallets — the investor cohort that accumulated aggressively through the last cycle — have begun distributing rather than holding. Combined with the plunge in sentiment measured by the Crypto Fear and Greed Index, the climate suggests that many traders prefer to stand aside rather than attempt buying the dip.
Is there still a bullish invalidation point?
Bears have a clear advantage as long as Bitcoin trades below the mid-$100K region. A decisive recovery above $110,000 would be the first technical signal that downside exhaustion may be ending; only then would a retest of the all-time high near $126,330 return to the conversation.
Until that happens, traders warn that Bitcoin’s path of least resistance remains downward — and the possibility of a slide toward the mid-$60,000s is becoming harder to ignore.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Kosta joined the team in 2021 and quickly established himself with his thirst for knowledge, incredible dedication, and analytical thinking. He not only covers a wide range of current topics, but also writes excellent reviews, PR articles, and educational materials. His articles are also quoted by other news agencies.
Source: https://coindoo.com/major-bitcoin-crash-warning-as-fed-rate-cut-odds-plunge-and-bears-take-control/