Bitcoin News: AI stocks cool down, triggering profit-taking; 460 million liquidation causes a 4% drop in a single day

This week, Bitcoin’s price briefly rebounded near $107,000 before weakening, falling back to around $102,000 on November 13. Profit-taking and cooling AI and tech stock trading dampened market sentiment. Analysts indicate that over $460 million in liquidations highlight market fragility, while ETF capital inflows remain sluggish, suggesting institutional investors are waiting for clearer macroeconomic signals before re-entering.

Bitcoin Rebound Fails at $107,000, Giving Back 4% Gains

(Source: CoinMarketCap)

CoinSwitch Markets Desk reports that the cryptocurrency market is showing sideways consolidation with weak momentum. Bitcoin is trading around $103,300, down about 3% for the day. Earlier, Bitcoin briefly rebounded toward $107,000, but the rally lost steam amid profit-taking and a slowdown in AI and tech stock trading, causing Bitcoin to retreat to around $103,000.

This decline from $107,000 to $102,000 within a few hours erased over 4% of its value. For traders with leveraged positions, such volatility is enough to trigger forced liquidations. Profit-taking was a major driver of this drop, as many investors who bought during October’s Uptober at lower levels took profits when Bitcoin approached $107,000. This behavior, known as “selling on rallies,” is a rational risk management strategy.

The cooling of AI and tech stocks is a notable macro factor in Bitcoin news. AI-related tech giants like Nvidia, Microsoft, and Google led the US stock rally over the past year, pushing the Nasdaq to new highs. Recently, these stocks have shown signs of profit-taking, partly due to overvaluation concerns and partly because AI commercialization progress has been slower than expected. Tech stocks and cryptocurrencies are highly correlated; when tech weakens, risk appetite declines, leading investors to reduce crypto holdings.

Wednesday’s price action shows Bitcoin still struggles to break and hold above the key resistance at $107,000. In technical analysis, repeated testing of a resistance level without a successful breakout increases its significance. Large limit sell orders likely exist near $107,000, which can trigger strong selling pressure when approached. Only when buying volume is sufficient to absorb these sell orders can the price break through and stabilize.

On-chain data indicates increased selling activity among long-term holders near $107,000. Glassnode data shows long-term holders are spending at recent highs, suggesting “smart money” is reducing positions at relatively high levels, possibly signaling they believe Bitcoin will face difficulty breaking higher in the short term. This behavior supports the bearish narrative in Bitcoin news.

$460 Million Liquidation Wave Highlights Market Fragility

Riya Sehgal, a researcher at Delta Exchange, states that recent declines in cryptocurrencies reflect heightened risk aversion, as traders close leveraged positions amid liquidity shortages. Bitcoin failed to sustain above $107,000, and Ethereum dropped below $3,550, exposing market vulnerability. Over $460 million in liquidations further emphasize this fragility.

A liquidation of this scale is moderate to large for a single day. Liquidations occur when traders’ margin is insufficient to support their positions, prompting exchanges to forcibly close trades to prevent further losses. Large-scale liquidations can intensify price swings, as forced sell orders push prices lower, triggering more liquidations in a vicious cycle.

“ETF capital inflows remain sluggish, indicating that institutional investors are waiting for clearer macroeconomic signals before re-entering. Despite optimism over a potential resolution to the US government shutdown and rate cuts, crypto performance still lags behind traditional markets. Overall, traders are prioritizing capital preservation over risk-taking until market direction becomes clearer,” Sehgal added.

The low ETF capital inflow is one of the most concerning signals in this Bitcoin news. Since Bitcoin’s October peak, daily net inflows into US spot Bitcoin ETFs have sharply decreased, with multiple days of net outflows. This cautious stance from institutional investors contrasts sharply with the frenzy during Uptober, when funds flowed into ETFs like BlackRock’s IBIT, providing strong structural support for Bitcoin prices.

Key Data Snapshot in Bitcoin News

Current Price: $103,300 (down 3% daily)

24-hour Liquidations: Over $460 million

Altcoin Declines: XRP, BNB, SOL, DOGE, ADA, HYPE all down over 8%

Market Cap: $3.47 trillion (down 3.43%)

ETF Inflows: Remain subdued, institutional sentiment cautious

TRON: An exception, up 0.55% against the trend

Technical Analysis: Support at $102,000 and Resistance at $110,000

CoinSwitch marketing team adds: “From a technical perspective, short-term support is around $100,000 to $102,000, with resistance at $110,000 to $111,000. If these resistance levels are broken, sideways consolidation or further decline could continue. Given limited capital inflows and unclear macro catalysts, patience and strict risk management are crucial.”

The support zone between $100,000 and $102,000 holds significant psychological and technical importance. The $10,000 mark is a major round number with strong psychological support. Historically, Bitcoin’s first breach of $100,000 was a milestone, giving this level symbolic significance. Many investors see $100,000 as a sign of Bitcoin’s mainstream adoption, motivating defensive positioning when prices approach this level.

The resistance zone at $110,000 to $111,000 is a critical hurdle for upward movement. This range has repeatedly seen rejection, indicating substantial limit sell orders. From a cost basis perspective, many positions are likely concentrated here, with traders choosing to take profits or cut losses during rallies. Only when buying volume is sufficient to clear these sell orders can Bitcoin advance further.

Over the past week, Bitcoin and Ethereum gained 1.39% and 3.34%, respectively. Among major altcoins, Solana and Hyperliquid declined 1.34% and 2.60%, while XRP, BNB, Tron, DOGE, and Cardano rose over 7%. This weekly performance contrasts with daily volatility, showing market resilience over the week despite short-term swings. TRON’s slight 0.55% gain indicates its unique position in stablecoin settlement.

Institutional Caution and the Critical $101,000 Support

Mudrex CEO Edul Patel notes that despite the US government nearing the end of a 40-day shutdown, Bitcoin remains around $103,300. While market sentiment is cautious, the introduction of the US crypto market structure bill maintains investor confidence. The bill clarifies regulation, token listing standards, and other key issues. Meanwhile, whales continue accumulating, expecting macroeconomic improvements to trigger a rebound.

Maintaining support at $101,000 is vital to prevent further declines. A successful break above $106,000 could reignite bullish momentum. The $101,000 level, slightly above CoinSwitch’s support at $100,000, may represent a more precise technical support point—possibly a previous breakout confirmation or Fibonacci retracement level.

Progress on the market structure bill offers a positive long-term narrative. A draft released by the Senate Agriculture Committee indicates bipartisan consensus on core issues. If passed and signed into law in the coming months, it would establish clear regulation for the US crypto industry, reducing legal uncertainty and potentially attracting institutional inflows.

The impending resolution of the government shutdown is also positive. A 40-day shutdown affected regulatory agencies like the SEC and increased economic uncertainty. If Congress passes a funding bill, the government will reopen within this week, removing a key source of uncertainty. However, in the short term, these positives may not fully offset profit-taking and the cooling of AI stocks.

Given limited capital inflows and unclear macro catalysts, patience and disciplined risk management are essential. Traders are prioritizing capital preservation over risk-taking. This risk-averse sentiment could persist until year-end unless strong catalysts emerge, such as Fed confirming rate cuts in December, major institutions increasing Bitcoin holdings, or regulatory breakthroughs.